Property investments in Romania gain 10 pct to almost EUR 1 bln in 2017

The volume of property investments in Romania climbed by around 10 percent to almost EUR 1 billion compared to the 2016 level of EUR 890 million, according to estimates by JLL, the real estate consultancy.

Looking at the whole Central and Eastern Europe (CEE) region, Romania accounted for 8 percent of the total investment volume of EUR 12.98 billion.

JLL analysts said the Romanian market grew faster than the rest of CEE, but remained under its potential.

“Sentiment is strong and with a solid pipeline of transactions set for 2018 we expect a good year ahead”, said Andrei Vacaru, associate director, Capital Markets JLL Romania.

The number of deals in Romania increased and the average value of a property transaction stood at EUR 28.5 million. Bucharest attracted the biggest share of investments –  36 percent – although the volume fell versus last year, while more funds went into secondary cities.

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Market volumes were dominated by retail transactions (43 percent), while industrial, hotels and office accounted for over 22 percent, 18 percent and 17 percent respectively.

Key deals in 2017

The sale of the Radisson Hospitality Complex in Bucharest by Elbit Imaging for EUR 169.2 million

The acquisition of 50 percent of Iulius Group’s retail and office portfolio by South African group Atterbury

The acquisition by Immochan of Coresi Business Park Brasov from Ascenta Management

The acquisition of Green Court Building C by Globalworth, from Skanska for EUR 38 million

The sale of ART BC to Hili Properties for EUR 30 million

The acquisition of Logicor’s Romanian portfolio as part of a Pan-European transaction by China Investment Corporation form Blackstone

The acquisition of the Renault warehouse in Oarja by Globalworth for EUR 42 million.