Latest News  

Romanian real estate investments up 80% in the first half

Bucharest leads the local market with 48% of investment transactions, followed by Sibiu with 29%, says a JLL report.

2016-07-15 10:48:56 - by Bogdan Tudorache

Romanian real estate investment volumes in the first half of 2016 are estimated to stand at Euro 340 million, a value 80% higher than that registered in the same period of 2015 (Euro 187 million).

The first six months of the year, however, witnessed a number of portfolio deals and owners strengthening their positions in projects.

Bucharest accounted for close to 48% of the total investment volume but we have also witnessed the first significant transaction outside of Bucharest, in Sibiu (29% of the total volume), since 2008. Market volumes were balanced between retail transactions (45%) and office (38%) while industrial accounted for close to 17%. It is worth mentioning that 8% of the total transaction volume is represented by a bank repossession of an office building.

The largest transaction registered in H1 2016 was the acquisition of Sibiu Shopping City by NEPI from ARGO for a total of Euro 100 million, which represents the largest single asset deal outside of Bucharest since the economic crisis. The most notable office transaction was the consolidation of GTC's position in City Gate through the acquisition of Bluehouse's 40% stake.

Andrei Drosu, Consultant Research Department JLL Romania, comments: "The macro-economic forecast for Romania looks positive, with GDP growth still holding at healthy 4.2% even following the results of the UK referendum. This should make the country one of Europe's top performers in 2016. Given the availability of quality product (especially offices) coming to the market in the next 12 months and the still significant yield spread between Romania on one side and Poland or the Czech Republic on the other, investors should take advantage of the current conditions and shift their attention to Romania and towards more core product within our market".

The most active buyers in the first half of 2016 were NEPI (Euro 124 million) and GTC (Euro 80 million), each of the two investors concluding two transactions. GTC, one of the most experienced players, with a Romanian market presence since the late 1990s, is shifting its local strategy and after a 7 year hiatus is starting to acquire income producing assets.

Prime office yields are at 7.5% just 25bps away from retail yields (currently at 7.25%), while prime industrial yields are at 9.00%. Yields have compressed between 25 and 50 bps in the last 12 months, but no significant further compression is expected in the second half of 2016.

Silviana Badea, head of Capital Markets JLL Romania, comments:"Brexit should have little short to medium term impact on the Romanian economy as long as the entire EU economy will not suffer any other unexpected shocks. Investors looking for distressed property in Romania will struggle to find any that can be worked out. Financing conditions having improved significantly over the past 18 months and increased appetites from banks for good product and serious sponsors is encouraging this flow of capital. It is quite true that the Brexit effect might take a few months to settle in before a clear trend will emerge."

Romanian real estate investment volumes increased with 80% in the first half of 2016. Bucharest leads the local market with 48% of finalized investment transactions, followed by Sibiu with 29%.
Please find attached more information about the largest transactions concluded in H1 and also about the more active players on the Romanian capital market.


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
Societe Generale European Business Services invests in innovative solutions made by Romanian start-ups

Societe Generale European Business Services, part of the international group Societe Generale, had ended its first corporate accelerator program dedicated to start-ups in Romania – Catalyst 2.0.

 Read Full article »
SAP launches free online courses for teens passionate about technology

SAP announced it has prepared several free online technology courses to be launched this fall for young and teens passionate about technology such as: Teens Get Coding! And Teaching Programming to Young Learner

 Read Full article »
Oracle gains cloud revenues up 51 per cent to 1.5 billion US dollars in new fiscal year's Q1

Oracle Corporation announced fiscal 2018 Q1 results, with total revenues up 7 per cent from the prior year to 9.2 billion US dollars. Cloud plus On-Premise Software Revenues were up 9 per cent to 7.4 billion US

 Read Full article »
Stefanini names Farlei Kothe as vice-president for EMEA

IT solutions developer Stefanini announced the naming of Farlei Kothe as vice-president for EMEA region. The new manager will coordinate the company's software development division from Bucharest.

 Read Full article »
Endava marks 10-year presence in Iasi and plans growth countrywide

British company Endava marks ten-year presence at Iasi, in North-Eastern Romania and also announces the opening of a new office in United Business Center of Palas Iasi compound.

 Read Full article »
Portland Trust celebrates 20-year anniversary with start of last phase of Oregon Park, Bucharest

The central European property developer Portland Trust and US based Ares Management are embarking on the final phase of Oregon Park, their new office park in Bucharest. This event coincides with the company 20

 Read Full article »
WBE: Which EU country is most at risk of cybercrime?

Computer users in South Eastern Europe may want to review their digital security after new research revealed they are the most vulnerable to cyber crime, a press release of Website Builder Expert (WBE) states.

 Read Full article »
GE opens new software center in Bucharest, looks for highly skilled IT specialists

GE announced that it speeds up growth for its software and digital resources in Romania and kicks off the recruitment campaign for GE Power's Grid Software Solutions (SWS) center in Bucharest.

 Read Full article »
DB Global Technology creates new technology hub, digital workplace floor and event venue

DB Global Technology S.R.L. (DBGT), Deutsche Bank's technology centre in Bucharest, has inau-gurated a new research and development hub, a digital workplace floor and a state-of-the-art event venue, according t

 Read Full article »
HIpark, a new office project of 21.000 sqm of 39 million Euro launches in Iasi

Ropharma announces the launch of a new mixed use project of offices and residential, with a full range of services and retail space, the estimated investment being amount to approximate-ly 39 million Euro.

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» GE opens new software center in Buchar...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» HIpark, a new office project of 21.000...
» DB Global Technology creates new techn...
» Stay updated on People in Shared Serv...
» Molson Coors started to grow its busin...
» Endava opens fintech hub and doubles n...
» Genpact's COO: Staying ahead of the cu...
» Capgemini to develop, deploy, and main...
» TELUS International Europe: The conver...
 
EDITOR CHOICE
TELUS International Europe: How big banks and fintechs are working together to innovate the customer experience

Comparing financial technology (fintech) companies to legacy financial institutions can invoke an image of David and Goliath. Fintech firms may be small, particularly when compared to the established titans of

 Read Full article »
Wipro launches automotive center of excellence in Romania

Wipro Limited, global information technology, consulting and business process services company, announced the launch of an Automotive Center of Excellence (CoE) in Timisoara, Romania. This CoE will help Wipro d

 Read Full article »
TELUS International Europe: The convergence of customer service and digital marketing/NewGen technologies: What does it mean for businesses?

Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing

 Read Full article »
Stay updated on People in Shared Services and Outsourcing Forum, October 19

Outsourcing Today organizes the third edition of People in Shared Services and Outsourcing Forum, on October 19, 2017 in Bucharest at Caro Hotel.

 Read Full article »
Preparing for the new future

Business shared services in Romania is by nature a flexible, mobile and diverse community and in this context, local markets develop their own particularities to address the global changes, to adjust to new dem

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