CBRE: Romania’s real estate investment volume slightly up to EUR 323 mln in H1

The volume of real estate investments in Romania increased by 6% in the first half (H1) of 2022 compared to the same period last year, to EUR 323 million, according to the Romania Real Estate Market Outlook 2022 launched by CBRE Romania, the leader of the real estate consultancy market. Fourteen transactions were signed during this period, with an average value of EUR 23 million.

CBRE also said in its report that 79% of the year-to-date volume was concluded during the second quarter of the year.

The largest transaction of the year to date was signed in the second quarter of the year, with the acquisition of EXPO Business Park by S IMMO AG from Portland Trust.

Bucharest attracted most of the transactions in the first half (10), while only 20% of the total investment was directed towards regional cities. Cluj-Napoca emerged as the most sought-after regional location.

In terms of market sectors, the office sector took the first place, with a share of 62% of the total investment volume. Industrial claimed 15% and retail properties 12%, while hotel and mixed-use properties had a joint share of 11%.

Regarding the investors’ nationality, the most important part of the capital, 37% of the total investment volume, was brought by Austrians, followed by Belgians (22%) and Romanians (18%). In the first quarter of 2022, the source of capital was exclusively foreign, with Romanian investors closing several deals in Q2.

CBRE believes that, amid an investment deals pipeline quite consistent, the year’s total investment volume could surpass the 2021 volume.

“The pipeline of activity for 2022 remains very strong, and we are certainly seeing the premises for one of Romania’s strongest years in terms of transactional volume. The outlook for 2023 is more mixed, as the ongoing interest rate hikes have a downward effect on liquidity Even in this context, Romania’s high yields by regional standards are acting as a buffer to safeguard activity,” says Mihai Pătrulescu, Head of Investment Properties at CBRE Romania.

Bucharest’s modern office stock reached 3.30 million sqm at the end of H1 2022, as four office projects with approximately 100,000 leasable sqm were delivered. The Center-West area of ​​the city represents almost 60% of the new supply, as two projects – Sema Park II – Oslo & London building (31,500 leasable sqm) and AFI Tech Park 2 (24,500 leasable sqm) – were added to stock.

Another 41,400 sqm in two office buildings will be added to the city’s modern stock by the end of the year. 83% of the total area to be delivered will be added to the Center-West area’s stock in one building – One Cotroceni – phase 2, with a GLA of 34,500 sqm.

According to the same source, between January and June, the total office leasing activity in Bucharest reached 132,500 sqm, 18% higher than in the same period of 2021. The total transactions excluding renewal/renegotiation represented 70% of the total leasing activity and were 60% higher than in H1 2021.

The largest transaction was concluded by Booking Holdings, which leased 9,000 sqm in U-Center Campus phase 1. Another important transaction is the lease of 6,500 sqm in Immofinanz’s office building, Victoria Park by Leventer Hospital.

At the end of Q2, Bucharest’s modern office stock recorded a vacancy rate of 13.9%, similar to the level from the end of the previous quarter. When analyzing exclusively class A office schemes, the vacancy rate drops to 11.7% in H1 2022.

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