The real estate market registered a spectacular evolution in 2017

The real estate market registered a spectacular evolution in 2017 with record volumes of activity in the industrial and offices sector, according to a specialty report, quoted by ActMedia.eu.

The level of rent was in general stable with slight increase in the commercial spaces market and the industrial sector, while the prices of houses got upwards on average with 10%.

The industrial and logistic sector registered record volumes of supply and demand at the national level, 2017 being the peak of the evolution of this market up to now. A speculative stock was finalised with 500,000 square metres, up by 42% against the previous year, international developers (CTP Invest, WDP, P3, Logicor, Zacaria Group, Globalworth)answering to the explosion of demand, according to the report made by the  real estate consultancy company Activ Property Services.

The volume of major tradings for renting got up by 70% in one year, up to 730,000 sqm at national level, over 73% of the demand being represented by activities of logistics /storage.

The  occupancy rate of the competitive stock continued to surpass 95% the majority of parks being integrally occupied, while the level of rent for industrial/logistic spaces of A class had a tendency of slight increase, with average values between 3.5-4 euro/sqm/month at national level.

The offices market reported a growing activity. The newly finalised stock in Bucharest of 147,800  sqm was kept at an average level of the last 8 years, in exchange in the provinces the supply gotto 93,000 sqm due to the record activity of Timisoara (42,000 sqm) according to the study.

Major tradings of renting had the value of 460,000 sqm being mentioned at national level with over 367,000 sqm rented in Bucharest (the second level as size of the last 10 years) and a record of 90,000 sqm in the provinces. The new demand was represented by almost 50% of the total, the highest of the last years. The IT&C sector continued its growth,representing 42% of the volume of demand in Bucharest and 50% in the provinces.

The non-occupancy rate of the main offices market dropped under 10% in Bucharest, the availability of the free spaces getting lower from 11.5% in 2016 to 9.1% of the existing stock at the end of last year. The level of rent was stable, with ‘prime’ values considered for the most representative central buildings from 17-19 euro/sqm/month in Bucharest, 12-14 euro/sqm/month(Cluj-Napoca, Timișoara) 10.12 euro/sqm/month (Iasi,Brasov) and 8/10 euro/sqm/month on the secondary market.

In exchange, the market of commercial spaces (retail market) registered a relatively contradictory evolution with a significant volume of demand potentially non-covered by the supply, as there are  limited volumes of stock newly finalised.In 2017 there were finalised 66.700 sqm of commercial centres (-70% against 2016) 23,885 sqm spaces in retail parks, being the first year when the stock of commercial centres registered a slight drop,the volume of closing down surpassing the newly inaugurated surface.

The volume of major investment trading increased by 56% in 2017 at over 925 million euro, as a result of the increase in the interest of international investors, of the increase of the volume of trading with commercial spaces (+65%) and the signing of the biggest hotel trading until now ( the Radisson Blu/Park Inn complex).

 

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