The real estate investment market in Romania offers the highest investment yields in Europe, which reach 7.25%-7.50% per year for office projects, according to real estate consultancy firm Savills.
On the industrial spaces segment, yields reach up to 8.5% per year, around Bucharest, while on the retail segment, yields stand at about 7.25% per year, according to Savills.
The consultancy firm expects the high yields and the results recorded by existing investors to draw new investors on the local market.
“Considering the relatively stable economic conditions, we can expect that foreign investors will be more interested in Romania, which may also lead to a potential compression in yields,” Savills specialists say.
The firm expects commercial real estate transactions on the local market to reach EUR 1 billion this year, a level similar to that recorded last year. In the first half of this year, transactions totaled EUR 429 million, almost two-thirds of which were on the office segment. Transactions worth EUR 300 million are currently pending in various stages, according to Savills.
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