Investment sentiment among property companies has improved since the start of the pandemic and developers are adapting to emerging demands, suggested speakers during the post-COVID-19 investment and asset management strategies panel of SEE Property Forum 2021, Property Forum's annual event in Bucharest.
Tim Wilkinson MRICS, Chairman of RICS in Romania, who chaired the panel, spoke about attractive investments in the pandemic economy and the pricing environment for property assets.
Investment sentiment is very positive when it comes to industrial and logistics projects, pointed out David Canta, Principal of Avison Young Romania & Czech Republic. He added that transactions are quite conservative in the private market, while in public markets we might see a deviation from fundamentals.
Irina Dimitriu, Partner and Head of Real Estate at Reff & Associates | Deloitte Legal, pointed out that she has worked on a lot of land deals in the recent period, especially on reconversions of industrial platforms for new developments. Demand for such investments is growing both in Bucharest and regional cities.
A big risk today for the property sector is the energy crisis and green buildings are providing cost-effective solutions, explained Ana Dumitrache, Country Head Romania at CTP. She added that in the industrial sector, people have adapted to the new structure and e-commerce keeps growing in Romania and catching up with the rest of Europe.
Alexandru Mihai, Managing Partner at Nordis Group, pointed out that average prices in the residential field will grow by 5% this year, in line with last year’s result. He added that the growth of the inflation rate raised interest in Nordis’ investment product because people want property assets that generate an attractive yield.
The office market has been quite challenging, but tenants in Romania and Bulgaria will be able to absorb a rent increase of 5-7% in 2022, suggested Lyubomir Mladenov, Associate Director at Knight Frank Bulgaria. Comparing Romania to Bulgaria, Mladenov suggested that in the latter there are fewer challenges related to permitting of real estate projects.
