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Insights | PROPERTY TIMES ROMANIA INVESTMENT 2014
PROPERTY TIMES ROMANIA INVESTMENT 2014
- Total investment volume in 2014 exceeded € 1.3 billion, being 4.3 times higher y-oy. Approximately 70% was registered in Bucharest. This is the largest investment volume recorded in Romania since 2008.
- The largest share was represented by the retail sector, with ~ 40%. Office sector accounted 27% from 2014’s investment volume, while transactions with industrial properties accounted 13%. After six years of stagnation, industrial prime properties have become again of interest in 2014.
- The most important investment deals have been registered in Q4 and represent 69% from 2014’s investment volume. NEPI continued to be the most dynamic investor in acquiring retail properties, while Globalworth was the most active in purchasing office properties.
- The properties sold by banks represent a small share in the total investment volume recorded in 2014. After seven years of dry activity in terms of recovering bad debts, banks continued to show little flexibility in negotiating the sale of collaterals.
- Prime yields have strengthened, clearly showing that Romania is again becoming a desired destination for real estate investments. Prime yields for office are in the range of 7.75 – 8%, prime yields for retail are between 7.5 – 7.75%, while prime industrial properties stand at 9.5 – 9.75%.
