Romania recorded real estate deals of about EUR 900 million last year, up 35% compared to 2015, according to data published on Wednesday by the real estate consultancy group JLL.

The number of deals was lower year-on-year but the average value of a transaction went up.

Bucharest accounted for over 70% of the total volume of the deals, less than in 2015. This shows that the liquidity in the secondary cities improved, reports local News.ro.

The demand from tenants is at record levels across all market segments. Also, the number of properties available for sale is growing and the yields in Romania are significantly higher than those in Poland and the Czech Republic. The terms and conditions for financing have also considerably improved in Romania in the last year, getting closer to those of more mature countries in the region.

“Consequently, sentiment is strong, with transactions of approximately EUR 630 million in different stages of negotiation,” said Silviana Petre Badea, National Director, Head of Capital Markets JLL Romania.

The yields amount to 7.5% for office projects, 7.25% for prime retail, and 9% for the industrial market.

“There is downward pressure on yields and in 2017 significant compression in industrial and mild compression in offices and retail is likely,” Badea added.

Romanian real estate market records best year after 2008, with deliveries of one million square meters

editor@romania-insider.com