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Colliers sees positive real estate market in Romania, yet vulnerable to regulatory risks
All the segments of Romania’s real estate market are likely to perform well over the next two years, but the regulatory predictability becomes a key problem in the context of the Government’s new fiscal measures, real estate consultancy firm Colliers International managers explained, according to Wall-Street.ro.
A foreign investor who was planning to open a service center and employ 200-250 people in Romania abandoned the idea after the Government’s latest actions, Colliers managing partner Laurentiu Lazar disclosed.
However, more than 350,000 square meters of new office space will be delivered in 2019 and the total value of real estate deals could exceed EUR 1 billion, according to Colliers estimates. The non-occupancy rate rising from 9%-10% currently to maybe 13% by yearend occurs amid robust supply, therefore is not a major concern.
Colliers also estimates that in 2019 and 2020 the retail supply will grow by 500,000 square meters, double compared to 2017-2018, in response to the rapid growth in consumption over the past several years.
“The industrial market will continue to grow because, firstly, from the point of view of transport, the pressure on the carriers becomes quite high, transport becomes more and more expensive,” said Laurentiu Duica, director of the industrial department.