RICS presented its Romania Property Market Report at the 2nd RICS SEE Property Forum organised recently in Bucharest and highlighted the optimism of real estate professionals towards the future of real estate in Romania.
The second edition of the RICS Romania Property Market Report was published to provide a detailed overview of the local real estate market evolution. The report is covering all market sectors outlining the most important factors, drivers and trends affecting each asset class.
Radu Boitan FRICS, Chair of the RICS Board in Romania, said: “We trust that the present report will offer you valuable insights to the local property market and its future evolution, while positively contributing to your business decisions in the year to come. I want to take the opportunity and thank the exceptional team of our contributors for their hard work, which is another showcase of the diversity and depth of expertise available within the local RICS membership.”
According to the report, the Romanian economy had an encouraging evolution in 2014 thanks to good industrial production and growing exports. The GDP growth forecast for 2015 is estimated at 2.5 – 2.8 percent.
A positive evolution was recorded in all the local property market sectors in 2014, overpassing a long period of consolidation, developing and expanding in terms of both new projects and new international occupiers entering the market on the basis of improving macroeconomic performance, increased occupier demand, private consumption and investment market liquidity.
However, the EU anaemic economic growth anticipated for 2015 remains a significant concern for the Romanian economy and its exporting sectors due to a potential weakening effect in the external demand. In a multi-speed global economy marked by the contrasting economic performances of the USA and the EU, contradicting monetary policies, increasingly conflictual foreign trade strategies and unpredictable military events, further volatility is expected. The next period requires a more detailed and profound understanding of each country market, sub-market or individual asset. This new approach is key to ensure a successful investment performance and should replace the more traditional high-level, macroeconomic market-directional approach.