By Emea Riga
The volume of real estate investments in Romania exceeded one billion euros in 2019, being 7% higher than the level recorded in 2018, data from the research department of the real estate consulting company CBRE Romania shows.
The volume reached last year – about 1.06 billion euros – also marks a record of the last five years in terms of investment transactions on the Romanian real estate market.
“2019 was the year of the regional cities for transactions with office buildings, Cluj-Napoca attracting investments of almost 200 million euros, respectively 20% of the total volume traded at the country level, but Bucharest remained leader, with 64% of the total transactions. Office buildings were the main traded products, accounting for almost 75% of the total transactions nationwide, and the appetite for office buildings in the capital remains high and there are multiple opportunities, both in the established areas, such as CBD (Central Business District) and the north. Bucharest, as well as in the dynamic areas, which are still under development, such as the west of the city, “said Gijs Klomp, Head of Investment Properties, CBRE Romania.
From the point of view of the buyers profile, the Israeli investors occupy the first place through the record transaction since the end of 2019, with 36% of the traded volume, followed by the Romanian investors (26%) and the South African funds with 17%.
“Romania is an increasingly interesting destination for new investors and most likely 2020 will bring, like 2019, new names on the local market. There are several companies that want to expand their portfolio in Romania, in particular pursuing the acquisition of office buildings. and industrial spaces. We expect further yield compression for both offices (7% at present) and the industrial sector (7.75%), “added Gijs Klomp.
CBRE Romania expanded its local management team in 2019 by recruiting Gijs Klomp as Head of Investment Properties. Gijs has over 17 years’ experience in real estate and has been involved in procurement transactions with a cumulative value of over two billion euros in Central and Eastern Europe.
CBRE Group, headquartered in Los Angeles, is the largest commercial real estate investment and services company in the world, based on revenue in 2018. The company has over 90,000 employees (not including affiliates), meets the needs of real estate developers and serves owners and tenants through the more than 480 offices (excluding branches) worldwide.
By Emea Riga