The volume of new real estate investments in Romania amounted to €98 million in the first quarter of 2021, driven by the office and industrial segments. The investments were down 19% compared to the same period of 2020, according to a report by CBRE.
In Q1 2021, nine real estate transactions were closed, with an average value of €11 million. The biggest deal was the acquisition of the Bucharest Financial Plaza office building, sold by BCR bank to the Austrian property group Immofinanz for approximately €36 million.
CBRE research shows that investors from Austria and Czech Republic generated around 60% of the deal volumes. Across Central and Eastern Europe, property investments stood at €1.95 billion, down 50% compared to Q1 2020.
“It is interesting to note the appetite of investors for industrial projects: €38 million of the total volume was generated by industrial spaces transactions, almost equaling the volume generated by office buildings, respectively €40 million. This evolution validates investors’ interest towards industrial projects and the downward pressure on yields in this segment. An additional €20 million have been invested in hotels, a segment for which we also notice a high interest in recent months,” says Mihai Pătrulescu, Head of Investment Properties, CBRE Romania.
Mihai Patrulescu
Head of Investment Properties
CBRE Romania
Prime yields were steady at 7% for offices, 7.75% for industrial spaces and 7% for retail projects.
