The volume of real estate investments in Romania exceeded one billion euros in 2019, totaling about 1.06 billion euros, 7% higher than the figure registered in 2018, shows data from the research department of the real estate consulting company CBRE Romania. The volume reached in 2019 also marks a record of the last five years in terms of investment transactions on the Romanian real estate market.
“2019 was a successful year for the regional cities, regarding office buildings transactions, Cluj-Napoca attracting investments of almost 200 million euros, respectively 20% of the total volume traded nationally, Bucharest still remaining the leader, with 64% of the total transactions. Office buildings were the main traded products, accounting for almost 75% of the total national transactions. There is still a high appetite for office buildings in the Capital and there are many opportunities, both in the acknowledged 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 west of the city“, stated Gijs Klomp, Head of Investment Properties, CBRE Romania, a company who advised the sale of a package of three office buildings in Cluj-Napoca in 2019, owned by Hexagon group of companies.
From the buyers’ profile point of view, the Israeli investors take the first place with the record deal signed at the end of 2019, with 36% of the traded volume, followed by the Romanian investors (26%) and by the 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 extend their portfolio 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.
|City||Property||Sector||Price (million euros)||Buyer||Seller|
|Bucharest and Timisoara||NEPI Office portfolio *||Offices||308***||AFI Europe||NEPI Rockastle|
|Cluj-Napoca||The Office||Offices||129||Dedeman||NEPI Rockastle|
|Bucharest||Retail park portfolio||Retail||113||MAS Real Estate||Prime Kapital|
|Bucharest||America House||Offices||77||Morgan Stanley||AEW|
|Bucharest||Oregon Park III||Offices||60||Lion’s Head Investment||Portland Trust|
|Târgu Mureș||Promenada Mall||Retail||43||Indotek||AEW|
|Bucharest||A1 Bucharest Park||Industrial||40||CTP Invest||Vabeld|
|Cluj-Napoca||Liberty Technology Park||Offices||35||White Star||Fribourg Development|
|Cluj-Napoca||Portfolio Hexagon**||Offices||>30||Ideal Project Services||Hexagon|
|Bucharest||Day Tower||Offices||31||Corporate Finance House Group||Day Group|
Source: CBRE Research, market data
*Aviatorilor 8, The Lakeview, Floreasca 169A and City Business Centre
**Vivido Business Center, Advancity Business Center and Cube Office
*** A transaction is accounted for if it was closed or if the binding agreement was signed (the pre-sale-purchase contract) and only the subsequent conditions of closing are to be applied.
CBRE Romania extended its local management team in 2019, by recruiting Gijs Klomp as Head of Investment Properties. Gijs has an over 17 years’ experience in real estate and has been involved in procurement transactions with a cumulative value of over two billion euros in Central and Eastern Europe.