“The problems with the depth of liquidity in the market since 2009 have gradually improved over the last couple of years. The activity in 2017 provides for a strong foundation for 2018 in which we expect to see a significant increase in new foreign capital flowing into the market. The new equity tracking opportunities for investment in Romania are at relatively steady levels compared to the speed at which capital flowed in between 2004 and 2008," said Tim Wilkinson, Partner - Capital Markets at Cushman & Wakefield Echinox.

 

In 2017, the total volume invested in commercial property in Romania reached €989 million, 15.5% higher compared to the €856 million in 2016. The most active segment was the retail sector, where the estimated value of transactions was approximately €420 million, accounting for 43% of the total investment value. The rest of the volume was almost equally split between the office (20.3%), industrial (18.7%), and hotel sectors (18.5%).

 

The local market continued to be of interest for a wide range of investors, with capital inflows from 14 different countries, including China (China Investment Corporation), USA (Cerberus), South Africa (Atterbury and Prime Kapital), France (Immochan), Belgium (Mitiska-REIM), Austria (Immofinanz) and Czech Republic (CTP). Local investors were responsible for less than 10% of the volume invested.

 

The total investment volume in the Central and Eastern European area reached €16.2 billion in 2017, of which Romania attracted 6%.

 

"We expect to have a record breaking year for our Capital Markets team in 2018. The results of a number of strategic moves over the last two years ensure that the company is well positioned to support incoming investors. We can expect to see office transactions dominate volumes this year, closely followed by retail. The industrial sector will likely see the sharpest yield compression of all sectors and we expect continued activity in the hospitality sector, also across many secondary cities," said Tim Wilkinson.