Romania’s property sector has more liquidity and deals are taking place across sectors, although the country is not in a late stage of price discovery, concluded speakers of the dealmakers panel at the Spring Networking Party 2023, organised by Property Forum earlier this month in Bucharest
Tim Wilkinson MRICS, Head of European Acquisitions, Indotek Group, who chaired the panel pointed out that domestic capital is starting to gain traction in Romania. At the same time, we are also seeing a great repricing of assets in Europe. Romania is not in a late stage of price discovery and the question is if the liquidity will grow, added Wilkinson.
Alex Skouras, Managing Partner, Alesonor, pointed out that the company has been present in Romania for 20 years and this is an attractive market from a developer and investor perspective. He added that developers that are not taking a sustainable approach will not survive on the market in the not-so-distant future. The developer is working on a green residential complex near Bucharest and has already sold 450 homes.
Liquidity is an issue and will be an issue because bank financing is higher for end users and companies as well, explained Bogdan Doicescu MRICS, Head of Real Estate Division, Bog’Art. He added that Bog’Art is here to stay so the company’s investments and assets have to be sustainable.
Eastern Europe is for long-term growth, so whoever has equity to invest, it is a great time to buy, mentioned Cristian Ezri, Chief Investment Officer, Yellow Tree. He added that the company aims to have long-term assets and Romania offers very good yields, relative political stability and a pro-EU stance. Speaking about the investment strategy, Ezri said that when they are looking to buy a building, they consider how much it will cost to turn it green.
Adi Steiner, Managing Partner at STC Partners, pointed out that Romania has the best affordability rate of all Europe in the residential segment. He cited data showing that residential prices in Romania are now below the 2008 peak, while the personal income of Romanians doubled in this period.
