Real estate investment in Romania falls by 29% to 570 million euros in January-September

BUCHAREST (Romania), October 13 (SeeNews) – The volume of real estate investments in Romania fell 29% year on year to 570 million euros ($659 million) in the nine months ending in September, said 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 press release.

The impact of the COVID-19 pandemic on commercial real estate market liquidity was more pronounced in 2021 than in 2020. Over the past year, a series of large transactions have taken place, for which negotiations had begun before the pandemic broke out, JLL added.

“Although several transactions are 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 in largely generated by the lack of supply, as many owners are not interested in selling under the current market conditions,” said Andrei Vacaru, Head 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.

Like last year, the office segment attracted most of the investments made, around 350 million euros, or almost 60% of the total volume.

The most important office transaction recorded during the first three quarters of the year is 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 of this market segment so far 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 ​​approximately 38,000 m², 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 spaces segment attracted investments of more than 170 million euros, or 30% of the total volume traded. Interest in this market segment is now very high, but the record level of concentration due to two largest owners controlling more than 50% of the market is starting to discourage potential new investors, according to JLL.

There have been no significant transactions in the retail market yet 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 increasing slightly, both for logistics areas, where prime yields contracted in the third quarter from 8% to 7.75%, and for offices, where prime yields fell to 6.9% against 7%. This trend is generated by regional developments and by the considerable capital available for quality products.

($ = 0.8651 euros)