'Compared to other countries in Central and Eastern Europe, Romania enjoys a healthy intern request and there are clear signs showing the growth of the country’s activity. The international investors and developers try to get more and more from the market’s potential, as rapidly as possible. You grow, you adapt or you disappear, this is the current spirit of the real estate market. There is a large number of projects announced on all sectors, and the winner will be the one who aligns the quickest to the market’s trends and requests', considers Ilinca Păun, Managing Director Colliers International Romania.
The investment market was the star segment in 2015, the first year after the crises when the transaction activity really indicated the sector’s revitalization. The office segment was dominated by the outsourcing, through new companies or expansions of the exisiting ones, attracted by the local market’s opportunities. Moreover, the good macroeconomic situation sustains the positive sentiment of the real estate market. The increasing of wages with 8.4 pct. and of the consumption with 4.7 pct. compared to 2014 were reflected in better performance for retailers, according to the study published by Colliers International Romania.
More than 360,000 sq. m of offices will be delivered in 2016, and the interest for the market potential is confirmed by the large number of pre-leasing agreements already signed, more than a half of the stock to be delivered.
Regarding the transaction activity, unlike last year, when the market noticed some key transactions, in 2016 we will assist to more average transactions, with smaller areas, between 3,000 and 5,000 sq. m.
'The outsourcing sector will be in 2016, too, the main generator of office requests. The most important aspect of this growth is the increasing of the range of interest for Romania, so not only costs are the main attraction, but moreover the value and quality of the services delivered. WE expect a healthy request, sustained by new office deliveries in the following years', considers the study.
The retail market showed a growing effervescence in the last two years, boosted by the positive economic background, as well as by the increasing of wages. For 2016 new deliveries of shopping centres are being scheduled both in Bucharest and in large cities. According to the estimations in the study, the retail stock in Romania will increase with 500,000 sq. m by 2020. Among large cities, Timişoara is one of the most active following good results registered by the retailers already in the market, so the city will see a growth of 50,000 sq. m of non-food retail area in the next years.
The industrial market continued its ascendant trend anticipated since the preceding years, being doubled by the modifications of the current stock. In Bucharest, for the first time in the last eyars, new projects development started, scheduled for completion this year, totalizing more than 100,000 sq. m to ass to the already existing 941,000 sq. m. The consolidation of the industrial sector expands more and more outside Bucharest, with the West being the next industrial projects destination, with cities such as Timişoara and Cluj Napoca getting more and more of the new request.
For 2016 we expect a market with investment volumes similar to those registered in 2015. Romania is still offering an attractive level of yields compared to the other markets in the region. The financing cost is significantly higher than in Central and Western Europe markets, but the descending trend started, increasing the competiveness of Romania as investments destination, the study also shows. (source: capital.ro)