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Real Estate: 2016-best year of local real estate market since 2008 with one million sqm delivered
The retail, offices and logistics spaces that were handed over this year stood at 956,000 square meters, increasing by 88 percent compared to 2015, therefore marking the best year of the local real estate market since 2008, according to an analysis carried out by a real estate company
The year 2016 was a year with significant growths for the spaces which were handed over, on all of the real estate market segments, except for the office spaces outside Bucharest, a segment which came after 2015 which saw record deliveries.
For the industrial and logistics spaces sector this year was the best year in the history of the local real estate market, with approximately 380,000 square meters being handed over, increasing the consumption, but also a higher demand in the industrial sector, which generated a new wave of "turnkey" investments, as well as speculations, a sign that investors regained trust in the potential of this market.
Across all of the real estate sectors which were analyzed, approximately 6 percent of the spaces were built in Bucharest and around the Capital.
The highest growth of delivered spaces compared to the previous year, namely 240 percent, was recorded by the office sector in Bucharest, the new spaces cumulating almost 290,000 square meters.
The 370,000 square meters projects completed this year in the logistics and industrial sector represent the equivalent of spaces being delivered in the previous five years (2011-2015) all together, according to the analysis carried out by the DTZ Echinox, and the sustained pace of development is to be maintained in 2017 too.
Almost 190,000 square meters, representing half of the logistics and industrial spaces completed this year, were developed in Bucharest, after seven years in which the cumulated deliveries were only 90,000 square meters, which means very little for a European capital. The logistics market development tendency is to also maintain in 2017, when the DTZ Echinox estimates the level of deliveries to remain the same, the investors' focus being on Bucharest, Cluj-Napoca and Timisoara, seconded by Sibiu and Brasov.
Even though it is far from the figures that were reached in the boom period, the retail sector also had an important progress in 2016, the level of deliveries standing at 237,000 square meters, up by 40 percent compared to 2015.