This year is set to be a solid one in almost every real estate sector, according to CBRE’s ‘CEE Market Outlook’ 2016, noting that Bucharest should be on the investors list, giving a significant boost to retail investment in 2016.
“This rise in private consumption has triggered a wave of new developments, in the form of retail schemes and logistic warehouses driven by ecommerce. This consumer appetite has already led to increased turnover volumes and a stabilised operating income for retail properties, thus investment attractivness is high,” a press release informs.
Also, office-wise, demand is at record levels, driven largely by IT & outsourcing occupiers, a majority of which are international.
“The pipeline for the entire region is at rather low levels, with two major exceptions: Warsaw has over 670,000 sq m of new space scheduled for delivery in the next 2 years (which amounts to 15 percent of existing stock). The other star is Bucharest, with an even higher rate of pipeline versus stock (21 percent), which will put significant pressure on net effective rents and vacancy rates,” CBRE said.
Also, Bucharest in one of the capital cities in CEE scheduled to host new shopping centers in 2016.