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
New funding round could bring UiPath to 7 billion US dollars worth market value

RPA unicorn UiPath is about to become one of the highest-value companies in AI after is will be raising more than 400 million US dollars in Series D funding from venture capital investors, sources on the marke

 Read Full article »
Study: Labour force deficit reduces productivity: seven out of ten employers are affected

About seven out of ten employees say they had smaller profits and business figures, because of the labour force deficit and the shortage of specialists, data of the latest opinion poll made by BestJobs recruiti

 Read Full article »
Berg Software Romania: Reasons to outsource your software services to Romania in 2019

According to an opinion published by Berg Software, a company that specializes in technology consulting, software development and nearshoring/ offshoring, for both SMEs and large enterprises, with offices in Ti

 Read Full article »
Arvato CRM Solutions rebranded under the name Majorel

Bertelsmann and Saham's customer experience business, "Majorel" has been recently launched, according to a press release of the company.

 Read Full article »
Banca Transilvania launches BT Open Banking platform dedicated to fintech companies

Fintech companies and start-ups in IT can test the new BT Open Banking platform (BT Api Store), launched by Banca Transilvania, for online integration with banking services such as: display of online balances,

 Read Full article »
Techcelerator and Google Developers Launchpad sign a partnership for growing startups in Romania

Techcelerator, the acceleration program in Bucharest and Cluj and one of the relevant catalysts of the local tech ecosystem's growth and development, announced a partnership signed with Google Developers Launch

 Read Full article »
Bogdan Pelinescu, president of ABSL: At least 6.000 people to be enrolled in outsourcing industry in 2019 in Romania

Around 6.000 professionals are estimated to be hired in the outsourcing sector in Romania this year, according to a study conducted by Romanian Business Service Leaders Association (ABSL) and consultancy compan

 Read Full article »
Tremend expands its expertise in the financial area, through a new unit coordinated by Stefan Patra

Tremend, one of the fastest growing Romanian software companies, enriches its team of professionals. Stefan Patra joins the team as Vice President of the newly established unit of Financial Services and will co

 Read Full article »
Infosys officially opens new digital innovation center in Romania

Infosys a global leader in next-generation digital services and consulting, announced this week it will be opening a new Digital Innovation Center in Bucharest, Romania at an event attended by local government

 Read Full article »
Atos supports the OneWeb Constellation Program primed by Airbus OneWeb Satellites

A new era of mass producing satellites was achieved when Atos supported OneWeb in the successful launch of six satellites on February 27th. Atos' contributions included providing all of the Assembly, Integratio

 Read Full article »
 
 
 
MOST READ ARTICLES
» Romania ranks above EU average in gend...
» The voting procedure for the BRAND OF ...
» Berg Software Romania: Reasons to outs...
» Deloitte's Tech Trends 2019 report: B...
» Steven Hunt, SAP SuccessFactors: Tecto...
» Molson Coors started to grow its busin...
» Societe Generale-European Business Ser...
» Capgemini: Investing in people is the ...
» Countries in CEE region, including Rom...
» GRS has one of the fastest growths and
 
EDITOR CHOICE
The voting procedure for the BRAND OF THE YEAR 2019 IN ROMANIAN BUSINESS SERVICES is open!

This is the fifth edition of the event and the second year to select the public's favorite brand in the business services BPO, ITO and SSC in Romania.

 Read Full article »
Romania ranks above EU average in gender employment gap

In Romania, the employment rate measures the number of people who have a job as a percentage of the working age population. This page provides - Romania Employment Rate- actual values, historical data, forecast

 Read Full article »
Steven Hunt, SAP SuccessFactors: Tectonic movements in the world of work

The world of work will be shaped by five tectonic movements – or global megatrends – over the next few years. As you may guess from the geological analogy, the effects could be dramatic.

 Read Full article »
EY: European companies are divesting to future-proof growth

According to the EY Global Corporate Divestment Study, 84 per cent of European companies surveyed intending to divest within the next two years (the majority planning to do so in the coming 12 months), executiv

 Read Full article »
Knowledge-sharing presentation on latest trends the industry deals, in the program of Romanian Business Services Forum and Awards

Part of the upcoming joint half-day event, Romanian Business Services Forum and Awards to be held at JW Marriott Hotel on May 7th, the discussion agenda comprises a complex Knowledge-sharing presentation on lat

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