Romania offers attractive investment market – EuropaProperty

Strong GDP growth, increased real estate lending activity and a constant level of investment volume transactions makes Romania an attractive investment destination in the CEE region, Colliers International have revealed at Expo Real in Munich.

Economic activity in the Romanian investment market has posted one of the highest growth rates in the European Union. GDP advanced in Q2, by 6 percent y-o-y, which largely outpaced all expectations. The strong increase of private consumption was the main driver but gross value expanded in all major sectors of activity.

High levels of liquidity in the money market with ROBOR trading is well below the level of monetary policy of 1.75 percent. Minimum reserve requirements are also unchanged. In addition the level of investment volume transactions is constant.

Romania has now become an attractive destination across all sectors: offices, industrial and commercial.

Top three transactions

* GTC acquisition of Bluehouse 40 percent participation in City Gate project

Globalworth’s private placement of €180 million bond with CPPIB and Cairn Capital signals further trust in the market and its future. The bond is secured by prime real estate assets in Bucharest and has been listed on the Channel Islands stock exchange. Further, similar placements are expected in the following period given the increasing offer in quality products (especially offices).

Prime yields still register significant spreads between Romania and Poland or the Czech Republic.

Source: Colliers International Research

The market nowadays offers good perspectives in both capital appreciation gains and double digits returns, given yields compression trend and cash flow streams.