Latest News  

JLL Bucharest City Report: Industrial, logistics and offices were the drivers of the Romanian real estate development market

The industrial, logistics and office sectors in Bucharest were the drivers of the real estate development market in the first nine months of the year, while the retail sector recorded the lowest growth rate in terms of projects delivered in this period of time.

2017-11-15 20:25:46

According to the latest market report published by JLL, Bucharest City Report, over 215,000 square meters were delivered in the Romanian industrial market between January and September, of which 187,000 square meters only in Bucharest.

The remaining 28,100 square meters are located in the central area of Romania. The total stock in Romania exceeded 2.9 million square meters at the end of September. By the end of the year, were announced projects totaling 120,500 square meters in Bucharest, Timisoara and Roman, with the modern stock in Romania exceeding the 3 million square meter.

On the office market, in the analyzed period, the developers delivered projects with a total area of 114,200 square meters in Bucharest.The Center-West area benefited from the largest office area delivered this year, with 64,200 square meters in two projects, and by completing the first phase of New Times Square (33,000 m), the southern area is second receiver of the new stock in the first 9 months. The office stock in Bucharest increased to 2.5 million square meters. In the last quarter of this year a single large-scale project will be delivered in Bucharest, of 29,000 square meters, Globalworth Campus Phase 1, in the Dimitrie Pompeiu area.

The first nine months of 2017 were very poor in deliveries of retail projects, with only 11,000 square meters, represented the expansion of Sun Plaza Shopping Center. However, by the end of the year, the modern retail stock will grow by 60,000 square meters in three projects, all developed by NEPI. One of them is a new project - Ramnicu Valcea Mall (28,000 sqm), and two extensions of existing shopping centers in Galati and Sibiu. The stock of modern commercial spaces in Romania is estimated at 3.05 million square meters, of which 1.11 million square meters in Bucharest.

The retail sector cumulated 60% of the investment volumes

On the property investment market, the retail sector was the star, cumulating 60% of the volume traded in the first nine months. The sector was driven by the acquisition of 50% of the retail and office portfolio of Iulius Group (Iulius Mall Cluj-Napoca, Iulius Mall Iasi, Iulius Mall Timisoara and Iulius Mall Suceava and three office buildings) by the South African Atterbury Group . This is the first investment of the South African fund in Romania.

The first 9 months of 2017 the property investment volume for Romania is estimated at €610 million, a value almost 44% higher than the one registered in the same period in 2016 (€423 million). The number of transactions increased, with the average deal size standing at approximately €25.3 million.
Deals involving office buildings reached close to 25%, the rest being represented by industrial and hotel assets.

The most notable office transaction was the acquisition of Coresi Business Park by Immochan from Ascenta Management for around €50 million. This marked the entrance on the office market of the investor/developer which previously was focusing on retail projects.
In industrial, the largest deal in the first half of the year was the acquisition Renault Warehouse Oarja by Globalworth, for approximately €42 million.

Prime office yields are at 7.5%, prime retail yields at 7.25%, while prime industrial yields are at 8.5%. Yields for office and retail are at the same level as 12 months ago, while industrial yields have compressed by 50 bps over the year. There is soft downward pressure on yields and in 2017 we might witness further compression in case prime assets will transact.

"According to investment plans announced by real estate developers, 2018 is announcing a richer year in new deliveries than 2017, especially in the office and retail sector. If all the announced projects are completed, the office stock in Bucharest will grow by over 300,000 square meters and the retail store in Romania will be richer by 200,000 square meters. In the industrial segment, the duration of construction is much lower than in the case of an office building or a shopping center, so that although around 120,000 square meters are announced, we estimate that in reality the new offer will be much higher", comments Andrei Drosu, consultant Research Department JLL Romania.



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
A.T. Kearney: The widening impact of automation impact the business model of outsourcing

According to a recent article of A.T. Kearney and based on the findings of Global Services Location Index for 2017, the developing nations have long enjoyed the economic benefits of other countries' offshoring.

 Read Full article »
Freelancing – a solution to staff shortages for companies

According to Smartree Romania, a leading provider in Romania of outsourcing payroll services and personnel administration, freelancing has become more present among Romanians lately. Working with freelancers ca

 Read Full article »
Kaspersky Lab: Targeted attacks on radar for industrial organisations

Of the industrial companies that participated in the IT Security Risks Survey , every fourth has faced a variety of cyberattacks. Worryingly, one of the fastest growing types of threat among the multitude targe

 Read Full article »
E-commerce: Romanian companies sell online on their own, above EU average

A share of 16 percent of all enterprises located in the EU and employing at least 10 people received orders via a website or apps (web sales) in 2016, Eurostat reveals. At the same time, more than 8 in 10 enter

 Read Full article »
FAB LAB Iasi nominated at CEE Shared Services and Outsourcing Awards in Warsaw

Iasi city, in Eastern Romania, together with Conduent company and FAB LAB IASI project have been nominated at CEE Shared Services and Outsourcing Awards, to take place at Warsaw at the Hotel Intercontinental o

 Read Full article »
Endava and Velocity Partners announce merger to become truly global IT player

The merger between Velocity Partners, an innovative software development company with a strong presence in Latin America, and Endava, a global technology company with a sustained consistent growth and offices a

 Read Full article »
ACADEMY+PLUS: The partnership with private sector enables the forming of IT specialists meeting market demands

ACADEMY + PLUS, the free programming school, officially opened its activity in Bucharest. The inauguration takes place in partnership with the private sector and aims to train 140 IT specialists within the fram

 Read Full article »
Colliers: The availability of workforce influences the outsourcing companies' demand for office spaces

The demand for office space for the BPO / SSC sector in four major CEE cities - Wroclaw, Lodz, Krakow and Sofia - accounted for 60 per cent of the total demand in the first semester, while in Bucharest this was

 Read Full article »
Atos proposes to acquire Gemalto to create a global leader in cybersecurity, digital technologies and services

Atos. a global leader in digital transformation, announces that it has made a formal proposal to acquire Gemalto by way of a public offer for all of Gemalto issued and outstanding shares

 Read Full article »
Four companies represent Romania in Deloitte 2017 Technology Fast 500TM EMEA rankings

Trencadis, Tremend, APSISWARE and Qualitance represent Romania in this year's Deloitte's Technology Fast 500 rankings for Europe, the Middle East, and Africa (EMEA).

 Read Full article »
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Romanian Outsourcing Awards for Excell...
» Molson Coors started to grow its busin...
» Romania's IT industry could grow at an...
» TELUS International: How customer serv...
» Capgemini to open new office at Suceav...
» ABB opens the first robotics training ...
» Comdata to buy four subsidiaries of Fr...
» Four companies represent Romania in De...
» Committed to growth
 
EDITOR CHOICE
TELUS International: Chatbots - The pros and cons of automated customer service

Learn what key factors to consider before introducing chatbots to your customer service strategy

 Read Full article »
Why AFI Tech Park is the best value for money office project in Bucharest(P)

Based on the insight that location is a strong criteria employees take into consideration when choosing their workplace, AFI Europe Romania is currently developing AFI Tech Park, the newest office destination i

 Read Full article »
Shifting the workplace perspective towards high-end added value

This month, OUTSOURCING TODAY organized The Workplace of the future in IT and Outsourcing at Caro Hotel Bucharest, a new concept event meant to connect fast-growing corporate tenants from IT and outsourcing ind

 Read Full article »
Andrei Romanescu, Managing Director of Veeam Romania: Outsourcing sector, a decade evolution

Since the early 2000s, this sector has grown at a significant rate (about 20-30% per year). The industry has evolved from focusing on cost and labour arbitrage to adding value – therefore the growth is not so

 Read Full article »
TELUS International Europe: Discover how successful smart-home providers deliver exceptional customer service

Key Takeaways

• Internet of Things (IoT) connected home devices are making the contact center and customer service more important than ever. • A friendly approach and positive attitude are import

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