The volume of real estate investments in Romania exceeded one billion euros in 2019, totaling about 1.06 billion euros, 7 percent higher than the figure registered in 2018, shows data from the research department of the real estate consulting company CBRE Romania. The volume reached in 2019 also marks a record of the last five years in terms of investment transactions on the Romanian real estate market.
“2019 was a successful year for the regional cities, regarding office buildings transactions, Cluj-Napoca attracting investments of almost 200 million euros, respectively 20 percent of the total volume traded nationally, Bucharest still remaining the leader, with 64 percent of the total transactions. Office buildings were the main traded products, accounting for almost 75 percent of the total national transactions. There is still a high appetite for office buildings in the Capital and there are many opportunities, both in the acknowledged areas, such as CBD (Central Business District) and northern Bucharest, as well as in the dynamic areas, which are still under development, as is the west of the city,” said Gijs Klomp, Head of Investment Properties, CBRE Romania, a company who advised the sale of a package of three office buildings in Cluj-Napoca in 2019, owned by Hexagon group of companies.
From the buyers’ profile point of view, the Israeli investors take the first place with the record deal signed at the end of 2019, with 36 percent of the traded volume, followed by the Romanian investors (26 percent) and by the South African funds with 17 percent.
“Romania is an increasingly alluring destination for new investors and 2020 will most likely bring, similarly to 2019, new names on the local market. There are several companies wanting to extend their portfolio in Romania, pursuing especially the acquisition of office buildings and industrial spaces. We expect further compression of yields, both for offices (7 percent currently) and for the industrial sector (7.75 percent),” added Gijs Klomp.
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