Business Review’s latest Real Estate Guide reveals that the first semester of 2017 has been a positive one for the local real estate market and the upward trend looks set to maintain for the rest of the year. Through in-depth analyses dedicated to the office, residential, commercial and industrial markets, the guide reviews the main developments on the real estate market, the players’ forecast for the remaining of 2017 as well as new trends taking shape. Business Review looks into the growing popularity of mixed-use projects on the local market and new office trends taking shape in light of shifting work patterns.
Here’s an overview of our in-depth industry analyses, with more to be found in the digital edition of the guide:
The first half of the year saw several major transactions involving properties both in Bucharest and outside the capital being announced. Consultants are confident that the overall real estate investment volume will go beyond 2016 levels and new names will join existing players in the months to come.
The average vacancy rate for Bucharest offices is dropping, as less office space will be delivered this year compared to 2016, whilst demand remains high. Nevertheless, consultants are confident that leasing activity will remain similar or even manage to surpass last year’s level.
Economic growth and income increases are fuelling retailers’ optimism. With new shopping centre deliveries set to drop by about 60 percent in 2017 compared to the previous year, owners and retailers are focusing on consolidation and refurbishments. In the meantime, the new battleground for expansions is moving to secondary and even tertiary cities, say consultants.
The residential market looks set to maintain a sustainable growth pace this year, as developers push the pedal on new projects. There are however concerns on a possible market overheating taking shape.
Industrial & Logistics
The market looks poised to surpass new post-crisis records by yearend for the volume of new deliveries and leasing activity. Demand for both logistics and industrial space is on the up and there is plenty of room left for growth in the years to come, say consultants.
All this hints at a positive outlook for the entire year and the industry representatives Business Review spoke to for this edition of its supplement confirm the upward trend. This is welcome news – not only for the real estate market, but for the economy as a whole. However, despite the rosy picture that developers and consultants often paint, there are also reasons for concern looking further into the future. Hopefully, the real estate market’s maturing and consistent growth over the past couple of years is good news that will travel faster than the bad. This should keep Romania on the radar for new expansions and new investments, despite the recent fiscal stammering.
Read Business Review’s Real Estate Guide and find out the insightful opinions of industry experts and large developers, newest players as well as established investors expansion plans, and latest market trends in 2017.Download your copy here