Bucharest, March 13. Despite the pessimistic predictions at the beginning of the year, Romania has registered a notable evolution in 2018, having the third highest GDP growth in EU 28. Crosspoint has analysed the macroeconomic factors, the investment, office, industrial, residential and land markets with a focus on the capital city in its latest market report, The Romanian Real Estate Market 2018.
The investment volumes were similar to previous years, with the office products representing over half of the transactions and Romanian players entering the big league of investors. Romania records the highest yields in Europe, keeping the interest high as an investment destination.
The office market witnessed one of the best years, both in terms of investments, as well as the leasing activity. The vacancy rates are set at a historic low, but 2019 being expected to establish a new record in terms of deliveries of new products. The IT&C industry still dominates the leases, with over a third share, the vicinity to a subway station being the game changer. The co-working industry has a made a breakthrough on the Romanian market.
Romania’s industrial stock has reached record levels despite the reduced infrastructure improvements, yet the demand is very high, resulting into low vacancy rates. A small number of transactions were registered, due to the low availability of products.
New residential areas will emerge in Bucharest, focusing on green & smart homes, while new financing products will be made available. North and the Center of Bucharest remain the preferred destinations for high-end developments, translated into high land prices. 2018 was the record year in terms of land deals. Romanians are the most active investors, while residential is the main use. The presence of a few pioneers who are paving the way for the development of new areas of the city, such as Expozitiei, is an extremely positive sign for the future of the real estate market.