Bucharest has seized the attention of international real estate investors thanks to some of the highest prime yields among the CEE capital cities, according to Colliers International.
Bucharest has seized the attention of international real estate investors thanks to some of the highest prime yields among the CEE capital cities, according to Colliers International.
Romania is being more and more noticed by large investors due to the macroeconomic context, as well as yields and available financing lines, Laurentiu Lazar, director of investment and valuation services said at Expo Real.
Almost all European markets have registered slight yield contractions, yet Romania still offers some of the highest, registering above Poland and Czech Republic by 150-200 basis points. 'What’s important for this year’s investments market in Romania is that we have witnessed several transactions worth close to €100 mln, a not so common situation in the past and this generates more competition for capital attraction,' said Lazar.
Robert Miklo, associate director investment services, said investment volumes in 2015 are expected to be similar to those seen last year (€800 mln to €1 bn). 'However, the market is becoming more diverse with new sources of capital being attracted by the returns promised in high quality investments. Secondly it is notable that large ticket transactions (€50 to €100 mln) are taking place across all sectors: office, retail and industrial,' Miklo said.
'With strong asset fundamentals, capital markets liquidity improving and the still generous yield levels present in all sectors we believe there is an important arbitrage opportunity present in Romania at the time being,' he added.
Click here for Colliers' latest report on the Romanian real estate investment market
