Latest News  

JLL: Demand of Bucharest offices, mainly driven up by BPS and ITO in Q2

The office demand in Bucharest in the second quarter of 2016 was mainly generated by IT and BPO / SSC companies, which accounted for over 40% of the total volume registered, followed by banks with approximately 21% and health and pharma companies with 17%, says the most recent JLL report.

2016-08-16 11:07:23 - by Bogdan Tudorache

The Center-West sub-market attracted close to 43% of the total take-up followed by the northern area of Bucharest (Floreasca Barbu Vacarescu and Dimitrie Pompeiu) which together attracted close to 28% of the total take-up.

Vacancy rate in Bucharest decreased over the year to 12.8%, 50 bps below the level of Q2 2015. This is mainly due to the strong take-up and the fact that the new supply was partially pre-let. Vacancy rate is expected to increase by the end of 2016, due to the higher levels of speculative supply planned for delivery. A further 210,000 sq m are announced to be completed by the end of 2016.

Vacancy rates continue to be uneven between sub-markets, which is also reflected in the evolution of the rental levels. While in South and Pipera North vacancy is above 30%, the vacancy rate in Dimitrie Pompeiu, Floreasca Barbu Vacarescu, CBD, Center North, Center West and West is below or around 10%.

At the same time, the property investment volume in the first half of 2016 is estimated at Euro 340 million, a value 80% higher than the one registered in the same period in 2015.

Bucharest accounted for close to 48% of the total investment volume but we have witnessed the largest single asset transaction outside of Bucharest since 2008, in Sibiu (29% of total volume). Market volumes were balanced between retail transactions (45%) and office (38%) while industrial accounted for close to 17%.

The largest transaction registered in 2016 was the acquisition of Sibiu Shopping City by NEPI from ARGO for a total of Euro 100 million. The most notable office transaction in H1 was the consolidation of GTC's position in City Gate through the acquisition of Bluehouse's 40% stake. The most active buyers in the first half of 2016 were NEPI and GTC, each of the two investors concluding two transactions.

GTC, one of the most experienced local developers, with a Romanian market presence since the late 1990s, has changed its local strategy and acquired income producing assets.
While investor interest has increased due to the solid market fundamentals as well as to the significant yield spread between Romania and Poland or the Czech Republic, improving financing conditions and increasing appetite from banks for good product and serious sponsors are also encouraging new investment.

However, liquidity is limited by the supply. Prime products offered in institutional sale processes are rare.
Vendors expectation of a convergence of the yields with those from the core CEE markets can lead to a pricing gap as investors are still mainly looking for value-add opportunities.

Prime yields suffered no changes over the quarter with 7.25% for retail, 7.50% for office while for industrial they are at 9.00%. Yields have compressed between 25 and 50 bps over the year.

Brexit is expected to have little short to medium term impact on the Romanian economy and the real estate investment market, as long as the EU economy remains stable.


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
Deloitte Romania opens application for the 20th edition of Technology Fast 50 Central Europe competition

Deloitte Romania opens application for the 20th edition of Technology Fast 50 Central Europe competition, the prestigious regional ranking for fast growing companies in the technology sector.

 Read Full article »
Zitec launches its 1 million Euro Mirro app

Zitec, specializing in the development of customized tech solutions, services and products, launched Mirro.io within Bucharest Tech Week 2019, a dedicated application for measuring the performance within the co

 Read Full article »
Analysis: Romania needs 1 million workers and 10,000 industrial robots

The Romanian economy has been facing for several years an acute crisis of workforce, the necessary of workers being evaluated at approximately 1 million people, but 10,000 industrial robots as well, shows an an

 Read Full article »
Adobe to add 100 more people in Romania to the already 600 staff professionals

Adobe Romania announced it touched the 600 employees' milestone in Romania and it is looking to expand its local team with 100 more professionals experienced in technical and software engineering.

 Read Full article »
Randstad Employer Branding 2019: Salary, benefits - most important criteria for 70% of Romanians when applying for job

The Chinese with Huawei and the Americans with IBM and Ford are the most wanted employers in Romania, and the most important criterion for Romanians in case of an employment decision is salary and extra-salary

 Read Full article »
Deloitte 2019 Global Human Capital Trend report for Romania: Leaders need to understand new technologies

The most important things for Romanian employers are lifelong learning, developing leaders and improving employee experience, according to Deloitte 2019 Global Human Capital Trend report for Romania.

 Read Full article »
Fortech expands its footprint with a new sales and consultancy hub in Chicago

Fortech – one of the largest Romanian-owned IT services companies, repeatedly recognized by Deloitte and EY – today announced the opening of its flagship sales and consultancy office in the U.S., in downtow

 Read Full article »
Digitization boosts the controlling market in Romania, estimated at 80 million Euro

Management consulting company Horváth & Partners estimates that believes that in the near future, the digitization of financial departments will become a necessity and it will be a decisive factor in streamlin

 Read Full article »
ABSL organizes its next Business Mixer at Brasov on May 22nd

Brașov Business Mixer is the first conference organized by ABSL, dedicated to the local business services community.

 Read Full article »
Oracle Academy numbers 650 students and 200 teachers participating within its projects in the past six months

In the past year, worldwide, Oracle Academy worked with more than 15,000 educational institutions across 128 countries, supporting more than 6.3 million students worldwide to prepare them for careers in our tec

 Read Full article »
 
 
 
MOST READ ARTICLES
» Digital Transformation Conference to t...
» ASE's HR Master – helping students i...
» Meet the winners of ROMANIAN BUSINESS ...
» Marian V. Popa: Meet the speakers at R...
» Randstad Employer Branding 2019: Salar...
» Zitec launches its 1 million Euro Mirr...
» Deloitte Romania opens application for...
» Capgemini to open new office at Suceav...
» Romulus Caralicea: Meet the speakers a...
» Oracle Romania inaugurates the Iasi of...
 
EDITOR CHOICE
Digital Transformation Conference to take place on June 19 at Bucharest

The Diplomat – Bucharest organizes Digital Transformation Conference to be held on 14 of June in Bucharest, at Hilton Hotel - Regina Maria Hall, starting 8:30 AM.

 Read Full article »
L&D Conference by The Diplomat Bucharest to take place on June 4th at Bucharest

The Diplomat-Bucharest organizes the Third Edition of its Learning & Development CONFERENCE on 4 June, 2019 at InterContinental Hotel Bucharest starting 09:00 am.

 Read Full article »
Meet the winners of ROMANIAN BUSINESS SERVICES AWARDS, 2019 edition

ROMANIAN BUSINESS SERVICES FORUM & AWARDS 2019, in its fifth year, brrought on May 7, in Bucharest, a new concept event with engaging keynote sessions by industry leaders, interactive panel discussions, network

 Read Full article »
Few hours away from to the long awaited CEO Leaders Debate, a premiere of Romanian Business Services Forum and Awards

We are a few hours away to the long awaited CEO Leaders Debate, a premiere of Romanian Business Services Forum and Awards on May 7.

 Read Full article »
Colin C. Lovering: Meet the speakers at Romanian Business Services Forum & Awards 2019, on May 7

Colin C. Lovering has been living and working in Romania since 2009 when he arrived to offer consultancy and advice to organisations looking for growth and profitability and founded Achieve International.

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