The volume of investments in Romania’s real estate sector increased by over 6% in the first nine months of the year to EUR 400 million.

By the end of this year, the investments will total some EUR 700 million, a level similar to the one recorded last year, according to the real estate consultancy Jones Lang LaSalle (JLL).

The yields in Romania are at least 2.25-2.5 percentage points higher than those in Prague and Warsaw. However, several large investors prefer Prague or even Budapest to Bucharest, said Silviana Badea, JLL director, reports local Economica.net.

The appetite for the Czech Republic or Hungary is rather fed by enthusiasm, Badea explained. When this enthusiasm will wear off, investors will direct their money to Romania, which is a more sustainable area.

The lending conditions have steadily improved in Romania in the last 18 months, according to JLL Romania.

editor@romania-insider.com