www.business-review.eu Business Review | November 2021
6 REAL ESTATE
Real estate prices still high, transactions postponed as workers return to offices The value of transactions on the Romanian real estate market in the first 9 months of 2021 declined by 29 percent compared to the same period of 2020, to EUR 570 million. Transactions closed in the third quarter reached a total value of EUR 260 million. The impact of the covid-19 pandemic on the liquidity of the commercial real estate market was more pronounced in 2021 than in 2020. Last year saw a series of largescale transactions for which negotiations began before the pandemic broke out. Prices have been rising slightly both for logistics area as well as for offices
“
By Aurel Constantin
Although several negotiation pro-
from Atenor by Hungarian Adventum Group.
starting to discourage potential new investors.
cesses are likely to close in the fourth
However, the most representative transaction
There have been no significant transactions
quarter, it is hard to believe that this
on this market segment so far this year, both
on the retail market so far in 2021, but the seg-
year’s transactions will be able to reach the
in terms of the competitive sales process and
ment has largely absorbed the shock caused
nearly EUR 900 million recorded in 2020.
the price, was the sale of the Campus 6.2 and
by the pandemic and the quarantine period of
This situation is largely generated by a lack of
6.3 office buildings in the center-west area of
2020. However, it is starting to provide very
supply – many owners are not interested in
Bucharest, where JLL represented the seller,
interesting opportunities for investors.
selling in the current market conditions,” said
Skanska. The buildings, with a total leasable
Andrei Vacaru, Head of Capital Markets at JLL
area of about 38,000 square meters, were
logistics areas, where prime yields shrunk in
Romania.
Prices have been rising slightly both for
purchased for EUR 97 million by S IMMO. This
the third quarter from 8 percent to 7.75 per-
Bucharest remained the top destination
move marked the reactivation of the Austrian
cent, as well as for offices, where yields have
preferred by investors in the first nine months
company on the Romanian investment trans-
fallen over the same period from 7 percent to
of 2021, with 70 percent of the total traded
action market.
6.9 percent. This trend is generated by the regional evolution and the considerable capital
volume – about EUR 400 million. Just like
available for quality products.
in 2020, office buildings attracted the most
INDUSTRIAL AND LOGISTICS SPACES
investments, with about EUR 350 million or
In second place among investors’ preferences
almost 60 percent of the total value.
were industrial and logistics spaces, which
GOING BACK TO OFFICES
attracted investments of over EUR 170 million
Prices remain high on all real estate markets,
corded in the first three quarters of this year
in the first nine months, or 30 percent of the
and that is one of the reasons why investors
was the sale of the Hermes Business Cam-
total traded volume. Interest in this segment
are keeping away. But as employees are re-
pus office complex in the Dimitrie Pompeiu
is very high right now, but the record level of
turning to offices, employers will have to find
area of the capital city, with a total area of
concentration – with the two largest owners
adequate working spaces for them. A study
about 75,000 sqm, which was purchased
controlling over 50 percent of the market – is
conducted by Cushman & Wakefield Echi-
The largest office space transaction re-
