Property investments in Romania could exceed €1 billion in 2022 given the high level of activity seen at the start of the year, according to a report by Colliers. Just a few office transactions in advanced stages likely to close this year will total over €600 million.
Last year, total investment reached almost €900 million, which was a share of 8% of the total €11.7 billion recorded across six countries in Eastern Europe.
“In this context of current geopolitical and health challenges, the global economic outlook is extremely difficult to predict. The war in Ukraine and related sanctions, on top of pandemic and ESG drivers and disruptions, will impactproperty markets in terms of supply, demand and affordability. As a result, it is difficult to say how the Romanian economy and especially the real estate sector will be affected in the future. The inflationary backdrop and aggressive monetary policy tightening by the Federal Reserve could impact local activity, delaying some of the positive changes we expect,” according to Colliers representatives.
On the financing side, banks continue to display a preference towards income producing assets (especially prime assets) and will prefer industrial and office more than retail and hotels, said Anca Merdescu, Associate Director Investment Services at Colliers.
Given the size and the sheer volume of transactions signed, closed, or pending in the past 12 months, the interest of institutional investors in Romanian assets remained unchanged and is expected to further materialize in the years to come, added Francisc Peli, Managing Partner of law firm PeliPartners.
