Real estate investment in Romania falls 29% to 570 million euros in January-September
BUCHAREST, Romania, Oct.13 (SeeNews) – The volume of real estate investments in Romania fell 29% on the year to 570 million euros ($ 659 million) in the nine months leading up to September, said the property management and investment services provider Jones Lang LaSalle (JLL) Wednesday.
In the third quarter alone, real estate investment reached 260 million euros, JLL said in a statement.
The impact of the COVID-19 pandemic on the liquidity of the commercial real estate market has been more pronounced in 2021 than in 2020. Over the past year, a series of large-scale transactions have taken place, for which negotiations had started before the outbreak of the pandemic, JLL added.
âAlthough there are several deals likely to close in the fourth quarter, it is hard to believe that we will be able to reach the 2020 level of around 900 million euros by the end of the year. . This situation is largely generated by the lack of supply, as many owners are not interested in selling under current market conditions, âsaid Andrei Vacaru, Director of Capital Markets at JLL Romania.
According to JLL, Bucharest was the preferred city for investors during the January-September period, accumulating 70% of the total volume traded, respectively around 400 million euros.
As last year, the office segment attracted most of the investments made, ie around 350 million euros, or nearly 60% of the total volume.
The most important transaction with office space recorded during the first three quarters of the year was the sale of the Hermes Business Campus office complex in Bucharest to Adventum Group and its partners by the Belgian Atenor.
However, the most representative transaction in this market segment to date in 2021, both in terms of the competitive sale process and the price obtained, remains the sale of the Campus 6.2 and 6.3 office buildings in Bucharest by Skanska. The buildings, with a leasable area of ââaround 38,000 mÂ², were purchased for 97 million euros by the Austrian real estate company S IMMO.
In the first nine months of 2021, the industrial and logistics space segment attracted investments of more than 170 million euros, or 30% of the total volume traded. Interest in this market segment is currently very high, but the record level of concentration due to two larger owners controlling more than 50% of the market is starting to discourage potential new investors, according to JLL.
There have not yet been any significant transactions in the retail market in 2021, but the segment has largely absorbed the shock caused by the pandemic and the quarantine period of 2020.
According to JLL, prices are up slightly, both for logistics areas, where prime rates of return fell in the third quarter from 8% to 7.75%, and for offices, where prime rates of return are fell to 6.9% from 7%. This trend is generated by regional developments and by the considerable capital available for quality products.
($ = 0.8651 euros)