Romania Sees 69% Surge in Real Estate Investments: A Regional Leader
Romania's real estate sector leads Central and Eastern Europe with a 69% year-on-year increase in investments
Real EstateInvestmentsRomaniaCentral And Eastern EuropeColliersReal EstateMay 30, 2024
The current market activity in the region is subdued, with transaction volumes reaching one of the lowest levels in recent years. However, Romania's investment performance remains strong, with the retail sector dominating the market. Laurențiu Lazar, Managing Partner and Head of Investment at Colliers Romania, attributes this growth to the difference between price expectations of buyers and sellers. He notes that several factors influence returns and liquidity, including interest rates, maturity, loan terms, and ESG compliance.
The total investment volume in the six CEE countries fell by 15% year-on-year to €1.2 billion in the first quarter, with the Czech Republic accounting for 46% of the total investment volume. Performance varied widely across the region, with investment activity in Slovakia, Bulgaria, and Poland down 94%, 78%, and 49%, respectively.
Bucharest and Sofia had some of the highest investment returns in the region for the office, industrial, and retail sectors. The Romanian capital saw top returns of 7.5% for the industrial and office sectors, while shopping centers generated returns of 7.25%. In Sofia, the office and retail sectors achieved returns of 7.75%, while industrial assets generated 7.5%.
The real estate outlook for Central and Eastern Europe is promising, but external factors and high interest rates are challenging liquidity. Sellers are forced to reassess their strategies and focus on ESG upgrades. International capital is essential for increasing market volumes, Lazar said.
Colliers is a leading professional services and investment management company that provides expert advice to real estate investors, developers, and occupiers. With operations in over 60 countries, Colliers delivers a full range of services to clients, including investment sales, leasing, valuation, and property management.
Colliers is a global leader in commercial real estate services, committed to accelerating success for its clients. With a legacy of innovation and a team of industry experts, Colliers provides a comprehensive range of services to investors, developers, and occupiers.
Frequently Asked Questions
What was the year-on-year increase in real estate investments in Romania? A: 69% Q: Which sector dominated the real estate market in Romania? A: Retail sector Q: What is the total investment volume in the six CEE countries in the first quarter of 2024? A: €1 2 billion Q: Which cities had the highest investment returns in the region? A: Bucharest and Sofia Q: What is the main challenge facing real estate investors in Central and Eastern Europe? A: High interest rates and external factors
Answer not available
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