The volume of real estate investments in Romania exceeded €1 billion in 2019, totalling about €1.06 billion, 7% higher than the figure registered in 2018, according to CBRE Romania’s data. The volume reached in 2019 also marks a record of the last five years in terms of investment transactions on the Romanian real estate market.
"2019 was a successful year for the regional cities, regarding office buildings transactions, Cluj-Napoca attracting investments of almost €200 million, respectively 20% of the total volume traded nationally, Bucharest still remaining the leader, with 64% of the total transactions. Office buildings were the main traded products, accounting for almost 75% of the total national transactions. There is still a high appetite for office buildings in the Capital and there are many opportunities, both in the acknowledged areas, such as CBD (Central Business District) and northern Bucharest, as well as in the dynamic areas, which are still under development, as is the west of the city", stated Gijs Klomp, Head of Investment Properties, CBRE Romania, which advised the sale of a package of three office buildings in Cluj-Napoca in 2019, owned by the Hexagon group of companies.
From the buyers’ profile point of view, Israeli investors take the first place with the record deal signed at the end of 2019, with 36% of the traded volume, followed by Romanian investors (26%) and South African funds (17%).
"Romania is an increasingly alluring destination for new investors and 2020 will most likely bring, similarly to 2019, new names on the local market. There are several companies wanting to extend their portfolio in Romania, pursuing especially the acquisition of office buildings and industrial spaces. We expect further compression of yields, both for offices (7% currently) and for the industrial sector (7.75%)”, added Gijs Klomp.
CBRE Romania extended its local management team in 2019, by recruiting Gijs Klomp as Head of Investment Properties. Gijs has an over 17 years' experience in real estate and has been involved in procurement transactions with a cumulative value of over €2 billion in Central and Eastern Europe.
