The volume of investment in Romania’s commercial property sector reached €330 million in Q3 2022 and €667 million in the first nine months, while in the first three quarters of 2021 the investment market stood at around €550 million, according to Colliers.
Romania could exceed €1 billion in total investment this year, but all depends on the successful divestment of CA Immo’s office portfolio, in a deal valued at around €440 million.
In Q3, the biggest transaction saw MAS REI buying out their joint venture partner, Prime Kapital, from six retail parks spread throughout Romania, in a transaction estimated at around €190 million for 60% of the shares.
“With sovereign interest rates moving sharply higher over recent months, there is a sense of expectation and worry amongst market participants. While yields have remained more or less unchanged in recent negotiations that may not last, as upside pressures on yields are becoming more visible,” according to Colliers’ report.
Across Europe’s property market, rising interest rates and weaker growth prospects are beginning to be reflected in asset pricing, say Colliers’ experts.
“Nonetheless in the UK and EMEA more broadly, real estate’s relative attractiveness will support the market and continued investment activity, particularly around prime product in major cities,” commented Richard Divall, Director of EMEA Cross Border Capital Markets at Colliers.
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