Last year has proven to be a turning point for the Romanian investment market. An increased number and more diverse group of investors started looking at individual assets and portfolios, resulting in the largest number of transactions since the beginning of the crisis. Will this upward trend continue into 2016 and 2017? We report from SEE Property Forum 2016, a conference co-organised by Portfolio Conferences and RICS, where the biggest players of the Romanian investment market came together to talk about the future.
‘Good quality stock is coming into the market which will make Romania more attractive for international investors’, said Stamatis Sapkas, Deputy Chief Investment Officer at Globalworth Real Estate Investments, who believes that interest is already visibly growing. Looking into the future Mr Sapkas expects that yields could compress to the levels seen before the crisis, to below 6%.
‘Scarcity of high quality prime assets is one of the reasons for the relatively low transaction volume’, said Robert Miklo, Associate Director of Investment Services at Colliers International, who thinks that investors and developers need to go the extra mile in order to get into Romania .
Looking into the future, members of Romanian investors’ roundtable seemed rather optimistic. Robert Miklo believes that ‘we’re on the right path, it just takes time’. Ioannis Xanthopoulos thinks that unless there is an external shock, Romania is going to continue to do very well. Claudius Ferentz and Răzvan Gheorghiu-Testa would a better mix of local and international investors. Finally, Andrei Vacaru believes that if a major player had a transaction in Romania (like Morgan Stanley did in Hungary) that would make a huge difference.
Sign up today for the latest news