Industrial, logistics and offices are drivers of Romanian real estate market in Q3

The industrial, logistics and office sectors in Bucharest were the drivers of the real estate development market in the first nine months of the year, while the retail sector recorded the lowest growth rate in terms of projects delivered in this period of time, according to the latest market report published by JLL, Bucharest City Report.

Over 215,000 sqm were delivered in the Romanian industrial market between January and September, out of which 187,000 sqm only in Bucharest.

The remaining 28,100 sqm are located in the central area of Romania. The total stock in Romania exceeded 2.9 million sqm at the end of September.

By the end of the year, were announced projects totaling 120,500 sqm in Bucharest, Timisoara and Roman, with the modern stock in Romania exceeding the 3 million sqm.

On the office market, in the analyzed period, the developers delivered projects with a total area of 114,200 square meters in Bucharest.

The Center-West area benefited from the largest office area delivered this year, with 64,200 sqm in two projects, and by completing the first phase of New Times Square (33,000 m), the southern area is second receiver of the new stock in the first 9 months. The office stock in Bucharest increased to 2.5 million sqm.

In the last quarter of this year a single large-scale project will be delivered in Bucharest, of 29,000 square meters, Globalworth Campus Phase 1, in the Dimitrie Pompeiu area.

The first nine months of 2017 were very poor in deliveries of retail projects, with only 11,000 square meters, represented the expansion of Sun Plaza Shopping Center.

However, by the end of the year, the modern retail stock will grow by 60,000 sqm three projects, all developed by NEPI. One of them is a new project – Ramnicu Valcea Mall (28,000 sqm), and two extensions of existing shopping centers in Galati and Sibiu. The stock of modern commercial spaces in Romania is estimated at 3.05 million sqm, of which 1.11 million sqm in Bucharest.

On the property investment market, retail sector cumulated 60 percent of the investment volumes in the first nine months. The sector was driven by the acquisition of 50 percent of the retail and office portfolio of Iulius Group (Iulius Mall Cluj-Napoca, Iulius Mall Iasi, Iulius Mall Timisoara and Iulius Mall Suceava and three office buildings) by the South African Atterbury Group. This is the first investment of the South African fund in Romania.

The first 9 months of 2017 the property investment volume for Romania is estimated at EUR 610 million, a value almost 44 percent higher than the one registered in the same period in 2016 ( EUR 423 million). The number of transactions increased, with the average deal size standing at approximately EUR 25.3 million.

Deals involving office buildings reached close to 25 percent, the rest being represented by industrial and hotel assets.

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