The first half of 2019 showed that there is liquidity in secondary cities for high-quality, institutional products, a fact supported both by the largest transaction in this time period, namely the sale of The Office in Cluj-Napoca, as well as by the fact that 70 percent of the volume total investments were directed to cities other than Bucharest.
More than half of the investments made in the first semester were related to office buildings, a trend that we expect to continue in the next period, with offices remaining the most liquid real estate class at the moment.
In a regional context, Romania and the Czech Republic are the only countries that have recorded higher investments, while Poland, Hungary and Slovakia recorded investment drops.
In the first six months, the investment market in Central and Eastern Europe exceeded EUR 5.47 billion and was dominated by Poland and the Czech Republic, which total 80 percent of the investment volumes.
In the last 12 months, prices for industrial and office properties in Romania have increased (the yields in the industrial segment have fallen by 50 basis points and those on the office market have decreased by 25 basis points), while prices for retail have remained at the same level.
“The above evolution is in line with regional and global trends, where investors’ appetite is increasing for industrial and logistics projects, especially due to the expansion of e-commerce and implicitly of the spaces that serve online retailers, while the shopping centers’ traditional products are losing their attractiveness, especially in the case of by-products. It should also be mentioned that, in the context of the apparent market effervescence, there is a risk that the gap between the price expectations of buyers and sellers will increase in the next period”, said Vacaru.
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