The value of signed real estate transactions in the first nine months of 2018 reached EUR 520 million, according to the real estate consultant JLL officials. The company estimates that the value will increase to EUR 800-900 mln by the end of 2018, according to Business-Review.eu.
Bucharest remains the strongest market with 76 percent of the transactions. Office transactions covered 56 percent of total transactions, and 30 percent out of these were retail projects.
”The unoccupied rate is about 8 percent and the rent remains stable at maximum EUR 18.5/sqm. Yet, most rents in Bucharest are around EUR 14 and 16/sqm. But there is inflation pressure on rent prices” Maria Florea, head of Office Agency, JLL said.
According to Florea, developers are still looking for areas close to a Metro station and it’s a risk to develop in areas like bulevardul Expozitiei, based on authorities promises to expand the subway network. Co-working is becoming more and more important.
The industrial market delivered 500,000 sqm in 2018. ”We are approaching 4 million square meters. And there are 300,000 square meters under construction, so I think the 4 million sqm milestone will be reached by the end of the year. We have around 195 sqm/thousand inhabitants. We have become the second market after Poland and we estimate a total demand of over 400,000 sqm, ”said Costin Banica, head of Industrial Department JLL.
Total demand for industrial space reached Q3 2018 to nearly 200,000 sqm, and 58 percent of the total space demand was recorded in Bucharest, followed by Cluj and Timisoara.
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