The volume of real estate investments in Romania exceeded the EUR 1 billion threshold in 2019, reaching about EUR 1.06 billion after a 7% annual advance compared to 2018, real estate consultancy company CBRE Romania estimates.
The performance reached in 2019 also marks a record of the last five years in terms of investment transactions on the Romanian real estate market. The office segment generated the largest volume of deals, accounting for almost 75% of the total transactions at national level.
“The appetite for office buildings in the capital city remains high and there are many opportunities, both in the well-established areas, such as CBD (Central Business District) and northern Bucharest, as well as in the dynamic areas, which are still under development, as is the city's western part,” said Gijs Klomp, Head of Investment Properties, CBRE Romania.
Israeli investors were responsible for about 36% of the traded volume in 2019, followed by the Romanian investors (26%) and South African funds with 17%.
“Romania is an increasingly alluring destination for new investors and 2020 will most likely bring, similarly to 2019, new names on the local market. There are several companies wanting to expand their portfolios in Romania, pursuing especially the acquisition of office buildings and industrial spaces. We expect further compression of yields, both for offices (7% currently) and for the industrial sector (7.75%),” added Gijs Klomp.
The biggest deal of 2019 was AFI Europe’s acquisition of a portfolio of 4 office buildings previously held by NEPI Rockcastle, for over EUR 300 mln.
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Real estate developers remained active on the land market in Bucharest, in 2019, securing the necessary land for new...