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Investment in Romania's real estate market was 27 pct down in H1 2018 from the same period of 2017 to 386 million euro; despite that, the local market was more active than Hungary or Slovakia's, a specialist report released on Thursday informs.
"The volume of investment in H1 2018 was of approximately 386 million euro, down 27 pct from the same period of the previous year, when investment deals on the local market amounted to 530 million euro. (...) In Central and Eastern Europe (CEE), the local market attracted 7.6 pct of the aggregate 5.1 billion euro worth of investments recorded in Poland, the Czech Republic, Slovakia, Hungary and Romania. Poland is at the top of the list with 3.2 billion euro and a share of 64.1 pct, followed by the Czech Republic with 910 million euro (18 pct). Romania came in third in CEE, with a share higher than Hungary (7 pct) and Slovakia's (3.3 pct)," the report notes.
On the local market, the office sector was the most active, accounting for 66 pct of the total volume, followed by retail with 29 pct. Hospitality and industry only made a low contribution of 3 pct and 1 pct, respectively.
According to report data, Lion's Head Investments - a joint venture between Old Mutual and South African financial services company AG Capital - struck the biggest deal with the acquisition of Oregon Park that features 70,000 sqm of lettable area in Bucharest's Barbu Vacarescu - Floreasca neighborhood. In its first transaction in Romania after almost 10 years, CA Immo bought the Campus 6.1 office building from Skanska, for 53 million euro.
In the retail sector, the most relevant deal was the acquisition of the Militari Shopping retail park in Bucharest for 95 million euro by another group of South African investors - Prime Capital and MAS Real Estate.
Real estate consultancy company Cushman & Wakefield Echinox is the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently.
