The Investment, Office, Industrial and Residential Markets H1 2019
The first half of 2019 registered a total investment volume of a little over 340M EUR with national investors being the most active players so far and office assets being the most appealing. The market feeling is optimistic, as there is a significant number of pending deals are due to close in H2 2019. A record number of quality products are available on the market this year and new investors are showing their interest in Romania.
On the office market, the CBD and western area were the most sought after for leasing, followed by the central area, while the interest for Pipera has registered a significant drop. The IT&C and Financial industries are the most active players. 133,000 sqm office space have been delivered in the first half, and an additional 175,000 sqm in 10 new projects are expected to be delivered by the end of the year.
Bucharest continues to be the largest industrial market both in terms of demand and supply. Over 123,000 sqm were leased in H1 2019, with the Capital accounting for 70%, followed by Timisoara. Taking into account the large number of deliveries announced for this year, vacancy rates are expected to rise.
With regards to the residential market, despite macroeconomic changes and government declarations regarding changes in the “First Home” programme, the lending conditions remained unchanged and this is still the preferred type of financing. In the first semester of this year, the residential market has not registered a significant rise in prices. The demand for new dwellings remains high in Bucharest and new areas suitable for residential developments
In the attached report, we invite you to discover the real estate analysis of the first semester and get updated with the latest trends and forecasts.