The growth rate of the Romanian market is higher than the region (3.3% compared to 2016), but the volume in Romania remains below the potential.

"In view of the ongoing transactions for 2018, we expect a good year on the Romanian market in line with the forecasts for volumes in Central and Eastern Europe which indicate for this year to exceed the record in 2017. Investors' interest for the region remains high, says Andrei Văcaru, Associate Director, Capital Markets JLL Romania.

Poland and the Czech Republic have maintained the region's leader positions for the second consecutive year, with a market share of 39% and 27%, respectively. These were followed by Hungary (14%), Romania (8%), SEE (8%) and Slovakia (4%), according to CEE Investment Market report by JLL.

In Romania, the number of transactions increased, with an average of about EUR 28.5 million.

Market volumes were dominated by retail transactions (43%), while the industrial and logistics segment accounted for 22%, followed by the 18% hotel and 17% office market.

"The transaction by which Elbit Imaging sold the Radisson hotel complex in Bucharest against the backdrop of an investment lethargic office market has climbed the hotel sector ahead of the office in terms of liquidity in 2017. It is a new situation, retail and offices should dominate the investment market given the value of existing properties", says Andrei Văcaru.

Radisson sale is the largest hotel transaction ever made in Romania and one of the largest in Central and Eastern Europe (CEE) and the most expensive real estate ever sold in Bucharest.

On the retail market, the largest transaction of the year was the acquisition of 50% of the retail and office portfolio of Iulius Group (Iulius Mall Cluj-Napoca, Iulius Mall Iasi, Iulius Mall Timisoara and Iulius Mall Suceava and 3 office buildings) by the South African group Atterbury.

The second most important transaction on the retail market was the acquisition by Mitiska of a portfolio of 11 retail stores and 3 development projects from the Alpha Group.

The most notable transaction in the office segment was the acquisition by Immochan of Coresi Business Park in Brasov from Ascenta Management. Other major transactions include taking Green Court Building C by Globalworth, Skanska for 38 million and selling ART BC to Hili Properties for 30 million euros.

On the industrial and logistics market, the largest transaction in 2017 was that through which the Logicor portfolio in Romania was taken over by China Investment Corporation in a pan-European transaction. Another important transaction is the acquisition of the Renault warehouse in Oarja by Globalworth for 42 million euros.

Geographically, Bucharest accounted for about 36% of the total volume of Romanian investments, less than in 2016, indicating an improvement in liquidity in secondary cities. (source: businesscover.ro)