The first quarter of 2021 closed with a total value of investment transactions worth 85 million euro in Romania, a decrease of c.42% compared to the first three months in 2020, in a context not yet significantly impacted by the Covid-19 pandemic, with office assets accounting about 50% of volumes, reveals Colliers in its latest “CEE Investment Scene Q1 2021” report. Despite the slow start, investor sentiment suggests a strong pick-up in activity in the second half of the year, subject to progress with the pandemic and open travel, according to Business-Review.eu.
Overall, the Central and Eastern Europe (CEE) investment flows are down by almost 48% on Q1 2020, at about 2 billion euro. Poland remained leader in the region, with investment volumes accounting for 65% of the overall CEE6 total, followed by the Czech Republic and Hungary, with a 14% share and 11% respectively.
The office sector was dominant all over the region in the first quarter of 2021 in terms of transactional activity, with a share of 50% of the total volume of investments, followed by industrial and logistics spaces that are up significantly as investors diversify into this seemingly Covid-proof sector (28%) and away from the more challenged Retail and Hospitality sectors (15%).
“This is well applicable to Romanian market where we have a volume of c.40 million euro going towards the office segment through Bucharest Financial Plaza and a 2,500 square meters office building in Brasov closed deals, representing c.50% of the total Q1 2021 transaction volume. A rather unexpected share of c.25% went to the hotels segment through Ramada Majestic and the Opera, Central and Venezia portfolio, marking two new investors entries on the local market and bringing back the hotels market interest and the soon expected recovery of this segment in Romania. The remaining share went nearly equally to retail and industrial&logistic assets through the Lidl portfolio and Solo Iasi transactions. About 30% of the investors were represented by domestic ones, still a balanced figure for the investors pool in Romania”, explains Anca Merdescu, Associate Director Investment Services at Colliers.
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