• Mon. Nov 28th, 2022

JLL: real estate investments in Romania will reach a new record, returns still above the average for the region

ByWillie M. Evans

Oct 7, 2022

After transactions totaling 656 million euros in January-September, the Romanian real estate investment market could reach 1.2 billion euros in a full year – a new record after 2008, according to real estate consultancy JLL Romania.

Although the trend is in line with active developments in the region, yields tend to remain constant in Romania – contrary to a general upward trend seen abroad. This may be due to the already higher yields in the Romanian market: 6.75% for the office sector, 7.25% for retail and 7.50% for the industrial segment.

In Poland – the largest market in Central and Eastern Europe – a significant increase in yields can be observed during this year: 100 bps for the industrial sector and 50 bps for the office sector, which reflects a price adjustment 22% for the industrial sectors and 11% for offices, partially offset by the rise in rents.

“The trend is explained by both the increase in risk aversion and the increase in financing costs. The main reasons why Romania has not followed the same trajectory are the significantly higher yield levels higher offered by the local market as well as the type and source of investors’ capital,” explained Andrei Văcaru, Head of Capital Markets JLL Romania, as quoted by Wall-street.ro.

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