Romanian real estate investment market halved in H1 2023 (report)
The real estate investment market in Romania reached EUR 168 million in H1 2023, almost half the size in H1 2022, reveal data in a Colliers report published on Tuesday.
The industrial and logistics segment make up approximately 36% of the total, and the office segment some 31%.
Also, offices remained an important asset class making up 31% of the total H1 2023 trade volume, while retail generated approximately 23% of turnover and hotels almost 11%.
"Constant rent increases, influenced mainly by inflation - and in the case of industrial spaces, also by a transition to an owner's market - have contributed to a certain extent to containing the pressures of increasing yields. With an all -in cost of financing of over 5.5% in the CEE region, largely determined by a surge in money market rates (3-month Euribor increased from -0.6% at the end of 2021 to over 3.7% in August 2023 ), the cost of money is the most relevant aspect in the context of increasing yields. This is because Romanian banks are still open to funding transactions as long as the buyer feels comfortable with the rates. In another vein, Colliers consultants observe a clear preference for assets of superior quality, in line with ESG standards," according to Colliers consultants.
Several large transactions are at various stages of completion and could be concluded in the second part of the year, which would bring the total volume of the year to EUR 500-600 million, about half of the the EUR 1.2 billion reported in 2022.
Colliers is a global leader in real estate consulting and investment management services, operating in 66 countries.