Colliers: 2021 is expected to be a year of recovery

2021 is expected to be a year of recovery, but many uncertainties remain, like those related to the vaccines’ ability to return everyday life back to normal or to potential jitters about the monetary policy at the major central banks’, which would have deep ramifications globally, Colliers International consultants predict, quoted by Business-Review.eu.

Working from home will become a common practice within many companies even after the Covid-19 pandemic, a more significant return to offices of employees being expected around the middle of 2021 if the inoculation with vaccines is successful.

Romania should recover most of last year’s losses in economic activity by end-2021, but the recovery will be quite uneven, with significant differences between industries. Some economic sectors, like e-commerce, construction, certain IT&C subsectors, have not blinked at all during the crisis, others should recover by end-2021, like overall retail trade and professional services in general, and some may take years (oif ever) to crawl back to a decent activity level, like aviation, automotive or tourism, says Colliers International consultants.

After a decade and a half as an EU member state, 2021 could lay the groundwork for future economic breakthroughs that could greatly accelerate economic development over the medium-term, considering the new pandemic package from the European Commission, Romania could attract as much as 80 billion euro in extra capital in the next years, one third of the country’s GDP, which should have a much greater impact than in neighbouring countries if utilized for reforms needed in the country.

Tourism will become more local and more frequent as things return to normal, Colliers International consultants predict. The vaccine gives hope in this direction, but reaching a reasonable threshold of immunity will be challenging in Romania and other countries that face a bigger percentage of popular skepticism towards vaccination compared to Western Europe.

Remote work will become a permanent fixture, but Colliers International consultants believe that companies will also want to bring their employees at least 3 days a week in the office in order to foster teamwork and corporate culture. A more significant return to offices of employees is expected around the middle of 2021, with buildings located in residential areas at the forefront, benefiting from a reduced commuting time.

Office tenants reign supreme in 2021, with a rapidly rising secondary market of sublease alternatives (low range estimates place it at over 2% of current stock at present) and a vacancy rate in excess of 10%. Colliers International consultants talk about a robust office delivery calendar, with around 260,000 square meters of modern offices due to be finalized in Bucharest and they expect that office market conditions should return to neutral in the first half of this decade.

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