With GDP growth outperforming by a significant extent neighbouring CEE countries, 2017 was very good for the real estate market in Romania, especially for office, investment and land segments. According to Colliers International’s new report, the market’s dynamism will be extended through 2018, supported by new demand and trends in the capital and especially in the major regional cities in the country.

The level of confidence in Central and Eastern European markets seems to have peaked according to the RICS Commercial Property Monitor. Expectations are still highly positive, but sentiment indices have topped out in the previous two quarters. Results for Q4 2017 demonstrate that both occupier and investment demand is still strong but the share of those who believe that some markets are close to peaking is growing steadily.

According to the latest analysis prepared by the Capital Markets team Cushman & Wakefield, investment volumes in Central and Eastern Europe reached nearly €13 billion in 2017. All CEE countries grew at a similar rate and maintained their share of the overall regional volume. Despite political risk perceptions, Poland grew most rapidly at 9% y-o-y from approx. €4.6 billion to €5 billion, which was the highest result recorded in the last 10 years. 2018 has already seen the benefit of deals that slipped from late 2017 with the investment volume in Q1 2018 likely to exceed €3 billion.

NEPI Rockcastle published its results for 2017. The total value of direct property portfolio owned and managed by NEPI Rockcastle exceeded €5 billion (including joint-ventures). Acquisitions and developments finalised during 2017 totalled €947 million, with 339,800 sqm GLA added.

REICO, on behalf of ČS nemovitostní fond, has sold the Táborská 31 office building in Prague 4, one of the longest holdings in its portfolio. The 8,144 sqm building was purchased by 100 Towers Holding.

International Campus AG, a specialist in micro-living products, is continuing its growth in Europe and expanding into the Czech Republic. In a joint venture with Czech project developer Karlín Group, International Campus has acquired a development project in the Holešovice district of Prague with 529 high-quality apartments for students. It has been agreed not to disclose the purchase price. The building that is to become “THE FIZZ Prague” will have a gross floor area above ground level of 16,529 square metres over eight floors. The opening is planned for Q1 2020.

Cushman & Wakefield Echinox assisted property transactions in Romania totalling over €300 million in 2017, accounting for 30% of the total local property investment volume of nearly €1 billion. The deals included projects such as Chitila Logistic Park, the Radisson Blu complex in Bucharest and two properties sold by REWE.

Economic sentiment indicators are still pointing towards further expansion in CEE-6 investment volumes in 2018, over and above 2017’s cycle high of €12.9 billion. The current economic and real estate investment cycle might top out in 2019. Colliers International has published its investment outlook for the CEE-6 real estate markets for 2018.

Romanian developer One United Properties plans to launch a residential project (One Mircea Eliade) with 250 apartments and the construction of a 24,000 sqm office building (One Tower) next to Bucharest’s Floreasca Lake, on the site of the former Automatica site.

Golub GetHouse has signed the purchase agreement of the property located at Jagiellońska Street 82 in the Warsaw district of Praga-Północ. The investment plot with a total area of 11,533 sqm is located opposite the Kozminski University. In the first stage of the project, a modern student house with cca. 430 beds and with student amenities will be constructed. The investment will be covered by the Golub GetHouse Property Fund II FIZ and in partnership with CA Ventures company, specializing in the construction of student houses in the USA.