Investment transactions totaling over €400 million are in different negotiations stages in Romania, mostly in the office and retail segments, according to real estate consultancy JLL Romania.
The first semester saw a 22% drop in investment volumes to around €309 million, but the market’s deal activity could send the investment volume to around €900 million in 2021.
Compared to last year, the number of transactions rose, while with the average deal size fell to €21 million.
“Romania offers very attractive investment opportunities on the property market from the perspective of prices,” says Andrei Văcaru, Head of Capital Markets JLL Romania.
Yields could come under pressure for logistic and potentially office, in line with regional evolutions, but this will also depend on debt availability and terms, according to JLL experts.
At present, prime office yields are at 7.00%, while for retail and industrial they stand at 7.25% and 8.00%, respectively.
In the first half there were more transactions closed compared to the same period of 2020, but the average deal size fell to €21 million.
Bucharest got 69% of all the transaction volume, followed by Timișoara, Iași and Oradea. JLL’s data further showed that local capital accounted for close to 10% of the total investment volume with international investors covered the rest.
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