Latest News  

Romanian real estate investments up 80% in the first half

Bucharest leads the local market with 48% of investment transactions, followed by Sibiu with 29%, says a JLL report.

2016-07-15 10:48:56 - by Bogdan Tudorache

Romanian real estate investment volumes in the first half of 2016 are estimated to stand at Euro 340 million, a value 80% higher than that registered in the same period of 2015 (Euro 187 million).

The first six months of the year, however, witnessed a number of portfolio deals and owners strengthening their positions in projects.

Bucharest accounted for close to 48% of the total investment volume but we have also witnessed the first significant transaction outside of Bucharest, in Sibiu (29% of the total volume), since 2008. Market volumes were balanced between retail transactions (45%) and office (38%) while industrial accounted for close to 17%. It is worth mentioning that 8% of the total transaction volume is represented by a bank repossession of an office building.

The largest transaction registered in H1 2016 was the acquisition of Sibiu Shopping City by NEPI from ARGO for a total of Euro 100 million, which represents the largest single asset deal outside of Bucharest since the economic crisis. The most notable office transaction was the consolidation of GTC's position in City Gate through the acquisition of Bluehouse's 40% stake.

Andrei Drosu, Consultant Research Department JLL Romania, comments: "The macro-economic forecast for Romania looks positive, with GDP growth still holding at healthy 4.2% even following the results of the UK referendum. This should make the country one of Europe's top performers in 2016. Given the availability of quality product (especially offices) coming to the market in the next 12 months and the still significant yield spread between Romania on one side and Poland or the Czech Republic on the other, investors should take advantage of the current conditions and shift their attention to Romania and towards more core product within our market".

The most active buyers in the first half of 2016 were NEPI (Euro 124 million) and GTC (Euro 80 million), each of the two investors concluding two transactions. GTC, one of the most experienced players, with a Romanian market presence since the late 1990s, is shifting its local strategy and after a 7 year hiatus is starting to acquire income producing assets.

Prime office yields are at 7.5% just 25bps away from retail yields (currently at 7.25%), while prime industrial yields are at 9.00%. Yields have compressed between 25 and 50 bps in the last 12 months, but no significant further compression is expected in the second half of 2016.

Silviana Badea, head of Capital Markets JLL Romania, comments:"Brexit should have little short to medium term impact on the Romanian economy as long as the entire EU economy will not suffer any other unexpected shocks. Investors looking for distressed property in Romania will struggle to find any that can be worked out. Financing conditions having improved significantly over the past 18 months and increased appetites from banks for good product and serious sponsors is encouraging this flow of capital. It is quite true that the Brexit effect might take a few months to settle in before a clear trend will emerge."

Romanian real estate investment volumes increased with 80% in the first half of 2016. Bucharest leads the local market with 48% of finalized investment transactions, followed by Sibiu with 29%.
Please find attached more information about the largest transactions concluded in H1 and also about the more active players on the Romanian capital market.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
IBM to open its fourth business services center in Romania

US-based IT giant IBM announced it would open a new business center in Cluj-Napoca this July, the fourth center operated by the It company in Romania, after Bucharest, Brasov and Timisoara.

 Read Full article »
SAP ranked first among Europe's most valuable brands in 2017

SAP, leading company in digital transformation, ranked 1st among Europe's most valuable brands, according to the 2017's edition of BrandZ Top 100 Most Valuable Global Brands, with a brand value of 45.194 billio

 Read Full article »
Nokia invests 73 million Euro in expanding its campus in Timisoara

Finland-based company Nokia said it will be expanding its campus in western city of Timisoara with the biggest research and development (R&D) center in the Romanian telecom industry and the total investment exc

 Read Full article »
Romania's Fribourg Capital launches 20 million Euro investment fund for startups

Romanian investment firm Fribourg Capital said it has launched Fribourg Digital, a 20 million Euro investment fund which targets startups in the IT sector, according to a company statement quoted by seenews.

 Read Full article »
Avangate plans to hire 45 IT specialists for its office in Romania

Avangate, the global eCommerce and subscription billing platform for software, SaaS, and digital solutions, with Romanian roots, which recently acquired the 2Checkout global payment processor, will hire 45 IT s

 Read Full article »
Qualitance made the FT's list of Europe's fastest-growing companies

The global technology innovation company with headquarters in Romania, US and Australia was ranked 612 on the list of 1000 European fast-growing firms, with a revenue growth of 165 per cent between 2012 and 201

 Read Full article »
Colliers: More than 265,000 sqm of office area is scheduled for delivery in 2017

More than 265,000 sqm of office area is scheduled for delivery in 2017, broadly in line with the level received in 2016, according to the recently launched market report of Colliers.

 Read Full article »
Societe Generale European Business Services reaches 1,000 employees in the shared service in Bucharest

Societe Generale European Business Services, the shared service center for Societe Generale Group, has reached 1,000 employees due to an accelerated growth over the last three years. Societe Generale European B

 Read Full article »
Adecco: Romania sees 40 per cent increase of recruitment in Q1 2017

This year had the best start of the last decade, from the perspective of recruitment volumes, being recorded in Q1 a growth of over 40 per cent of the recruitment against the same period of last year, and t

 Read Full article »
More than half of Romanian companies plan cybersecurity budget increase

According to a joint PwC Romania and Microsoft Romania survey launched recently, "Security in the Digital World", investments in cybersecurity are mostly driven by regulatory requirements instead of the organiz

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Grégoire Vigroux appointed the new Vi...
» Romanian Outsourcing Awards for Excell...
» Romanian Outsourcing Awards for Excell...
» SocGen's EBS division to grow 60%, exp...
» Bombardier: from Bucharest subway to t...
» Ericsson and Skanska trial IoT for Sma...
» OT Learning & Development Roundable ta...
» AFI Europe Romania and Dedeman sign ag...
» TELUS International Europe: E-book: Ho...
 
EDITOR CHOICE
Technology, friend or foe

How well do we understand the multitude of tools that are one touch away from us and how do we make the best use of it in terms of work efficiency, effectiveness and safety? Another of the biggest questions in

 Read Full article »
The future is now - Review of Romanian Outsourcing Summit, 2017

Romania delivers services in 25 languages with more than 100,000 specialists employed in the outsourcing industry and business services, and based on an estimated growth of 15-20 per cent, it is estimated to re

 Read Full article »
TELUS International Europe: How the travel and hospitality industry can get ahead with omnichannel customer service

For companies in the travel and hospitality industry, having an omnichannel strategy is becoming critical to compete in a complex market of both  Read Full article »

Genpact's COO: Staying ahead of the curve

Shibu Nambiar has over 18 years of experience in the services industry, covering roles in operations, project management, service delivery, product development, domain management and training.

 Read Full article »
Reshaping the industry mindset

The business shared services industry in Romania is living a fantastic youth, but may be heading towards a maturity that may come sooner than expected, thanks to disruptive emerging technologies and the urgent

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events