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Real estate transactions in Romania, up by 80 pc in H1 2016

The volume of real estate transactions on the domestic market is estimated at EUR 340 million in the first semester, an increase by 80 percent than the same period last year, when reached EUR 187 million, JLL Romania study reads.

In the first six months there were registered both transactions of project acquisitions, and deals for the complete take over control of co-owners over some projects.

Bucharest has attracted almost 48 percent of the investment volume, while Sibiu has recorded the first significant transaction outside the Capital after 2008.

According to the study, the volumes were balanced in terms of market segments between retail (45 percent) and offices (38 percent), while the industrial sector attracted 17 percent of transactions. At the same time, 8 percent of the transaction volume represents the taking over of an office building by the financing bank.

“The macroeconomic projections for Romania seem positive, with a forecast on the economic growth maintained at 4.2 percent even after the referendum result in the UK. This should make Romania one of the performers in Europe in 2016,” Andrei Drosu, Research Department consultant within JLL România commented.

The biggest transaction recorded in the first half of the year was the acquisition of Shopping City Sibiu by NEPI from ARGO, for EUR 100 million, representing the largest transaction with one property outside Bucharest, after the financial crisis.

According to JLL specialists, the investors who look at the properties with financial problems in Romania will try to find those that can be put on the feet. Financing conditions have improved in the last 18 months, and banks’ appetite for good products held by serious developers encourages this capital flow. On the other hand, it could take several months until Brexit’s effect will diminish and a clear trend will take shape.

About Anca Bernovici