Commercial property investment in Romania totaled €1.25 billion in 2022, up 40% compared to the previous years, of which the biggest single deal was Pavăl Holding’s acquisition of CA Immo’s office portfolio for €600 million, according to real estate consultancy JLL România. Last year's result was the biggest since 2008.
Last year, the office sector had the biggest share of 63% of the transactions’ market, followed by retail and industrial with shares of 24% and 8.5%, respectively.
“Going forward, given current market conditions, investors with equity and no need for bank financing will have a significant competitive advantage, and properties with bank financing transferable to a potential buyer will be significantly more liquid,” said Andrei Văcaru, Head of Capital Markets JLL România.
Bucharest was the biggest generator of property transactions with a total volume of around €940 million.
In Q4 2022, prime office yields rose from 6.75% to 7.00%, while in the retail and industrial sectors, yields were flat at 7.25% and 7.50%, respectively.
On investor’s country of origin, for the first time in the history of the local market, Romanian players dominated the investment market with a share of 52%. Next came investors from South Africa (20%), Austria (10%) and Belgium (8.5%).
For this year, JLL expects commercial property transactions to reach €800-900 million, which would be an average from the past years.
