Investment volumes on the Romanian real estate market reached nearly EUR 820 million in the first three quarters of the year, up by 45% versus the same period of 2019, and 27% more than in all 2019, according to real estate consultancy firm Colliers International Romania. Office assets accounting over 90% of volumes.

“While there is some inertia at play, it is encouraging that the year’s biggest deals – the sale of the NEPI Rockcastle office portfolio for over EUR 300 mln to AFI Europe and the sale of Floreasca Park to the Fosun/Zeus joint venture for over EUR 100 mln – were both finalized in August, in spite of the pandemic,” Colliers said in a press release.

At the same time, almost two thirds (62%) of real estate investors confirm interest for acquisitions of new projects, both in Bucharest and regional cities, and are currently ready to buy in more favorable conditions, given the new economic context generated by the Covid-19 epidemics, according to a survey conducted by Colliers International among nearly 50 real estate companies representing investment funds, developers, asset managers and banks.

“Industrial and logistics assets are coming into the spotlight for investors, with optimism increasing since April. The improved perception about industrial schemes is even more visible when referencing purchase prices, with 51% of respondents expecting to see higher purchase prices for these assets over the next year, up from 16% in April,” said Mihai Patrulescu, Senior Associate Investment Services at Colliers International.

Meanwhile, the sentiment regarding hotels and retail over the next 12 months is cloudy, and the continuation of the medical crisis maintains a level of re-adjustment on the office market, according to Patrulescu.

However, the share of market participants looking to expand their portfolios both in Bucharest and regional cities far outweighs that of those seeking an exit, according to the Colliers report.

(Photo: Lovelyday12/ Dreamstime)

andrei@romania-insider.com