While the investment volume will cool this year after the record of transactions worth €1.25 billion that was closed in 2022, Romania will remain on the radar of investors throughout 2023, with some trends set to shape the development. CBRE Romania has published a report summarising the driving forces for the local industry this year.
First of all, 2023 will be marked by a lack of predictability in price developments across the economy. This means that players in the real estate industry will discover on the go the dynamics of rates, which could even change investment plans 360 degrees.
Secondly, CBRE estimates show that there is a risk that the market will face limited supply, with sellers facing macroeconomic uncertainties and preferring to delay delivery, rather than trading at rates that are no longer competitive.
Thirdly, there are a lot more investors willing to enter the real estate market than known, so there is a possibility that the demand in the market could be higher than estimated.
Last year, one of the biggest performers on the market were domestic investors that accounted for half of the total deal volume, which was a record for the country. Aside from Romanian investors there were South African assets, with a percentage of 15% and Austrian assets with 10%. With shares below 10%, investors from Belgium, the UK, Hungary and Malta accounted for a total of a quarter of the total volume.
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