The Romanian property market remains attractive for investments, with 65% of investors surveyed by Cushman & Wakefield Echinox saying they are looking to expand their presence in the local market.
At the same time, 32% are looking to maintain their current assets in the following three years, while only 3% of respondents have indicated expectations of downsizing their activity.
The survey comprises local, regional and global investors and developers with a combined real estate portfolio in Romania valued at more than €10 billion.
“2023 saw new records, especially at demand level, in line with the respondents' expectations in the survey conducted at the end of 2022. Financing costs and inflation remain the main concerns, but we believe that they will ease throughout 2024 and the pressure on the real estate sector will be less significant,” said Vlad Săftoiu, Head of Research at Cushman & Wakefield Echinox.
Some 66% of respondents mentioned Bucharest as their investment destination in the next period, while only 24% are looking at tertiary locations. At the same time, 75% of the surveyed investors are exploring new industrial investments and 19% are looking at the retail sector. Meanwhile, only 3% mentioned offices as attractive investment targets in the next 12 months.
The survey further shows that interest rates are the biggest macroeconomic risk, followed by inflation and the wider geopolitical situation.
At the same time, inflation, financing and construction costs are the main factors that could influence the rental levels in the next period.
Going forward, investors will increase their sustainability projects, with a focus on building certifications and ESG strategies.
