The state of emergency imposed by the current pandemic has led to the almost total vacancy of office spaces, within the context of many of the employees working from home. The landlords want to lower service charge levels for this period and continue to provide the necessary services to maintain the buildings in optimal conditions, according to a report by CBRE Romania.

Saving money and time spent in traffic are the main advantages of working from home, while the main disadvantages are the lack of direct socialization with colleagues and the difficulty in separating professional from personal time, according to a survey conducted by Cushman & Wakefield Echinox.

Everyday personal and professional life have both been impacted by the COVID-19 pandemic in a radical and unexpected way, and the general opinion is that its influence and effects will have repercussions on how people live and work, even after the medical situation will be stabilized. Cushman & Wakefield Echinox and Dentons are launching a debate over 10 issues that will impact the entire office sector in Romania, covering over 350 modern buildings with a total surface of more than 4 million square meters and approximately 400,000 employees working in some of the largest companies, emblematic for the national economy.

With a total volume of approximately €120 million in the first quarter, the Romanian investment market had a similar start compared with the same period in 2019, when the volume of transactions was €117.5 million. An optimistic scenario puts the total volume of investments for 2020 at €750 million, while a pessimistic one somewhere at €500 million. Crosspoint Real Estate has issued its latest market report on the Romanian real estate market’s performance.

The preliminary investment volumes for the CEE region for Q1 2020 have reached ca. €3.7 billion, despite the onset of COVID-19 in CEE at the beginning of March. This volume was significantly boosted by the ca. €1.3 billion acquisition of the Residomo portfolio in the Czech Republic by Heimstaden, however, it still represents a y-o-y growth of 68% over Q1 2019 (ca. €2.2 billion) and 28% over Q1 2018 (ca. €2.9 billion).

Romanian developer Zacaria Group is offering industrial space free of charge for local authorities and non-governmental organizations to help manage the emergency caused by the COVID-19 pandemic, Transilvania Business reports. Furthermore, the company, for the first time, offers short-term rentals for companies that have to expand or temporarily move their activities due to the coronavirus crisis.

Romanian residential developer One United Properties is moving ahead with three new projects in Bucharest.

AFI Europe Romania announces the rescheduling of the opening date for AFI Brasov, the largest shopping centre project to be delivered in Romania in 2020. Initially planned for the spring of this year, the opening date is now scheduled for the autumn of 2020, should the overall social conditions allow it.

The business environment in China was the first hit by the COVID-19 epidemic, but the fast decrease of new cases in the past weeks brings hope for recovery in the second half of the year, with a positive impact on the real estate market as well. Based on China’s evolution, a similar outcome could be expected in Romania too, mainly driven by e-commerce, after the outbreak peak is surpassed and the number of new cases drops. Moreover, the current situation can bring growth opportunities for certain industries including segments of the real estate market, according to Colliers International.

As it was reported yesterday, the €300 million sale of NEPI Rockcastle’s Romanian office portfolio to AFI Europe has been suspended. In their separate announcements, the buyer claims that the completion of the transaction was impossible due to the COVID-19 related restrictions imposed by the authorities, while the seller insists that these restrictions did not prevent completion. The two companies have not reached a consensus on postponing the transaction’s deadline. NEPI Rockcastle has interpreted AFI Europe’s actions as a wish to cancel the acquisition and is now asking the company for a €15 million compensation.