RSS
Real estate: CBRE: Real estate investment volume in Q1 – 120.9 million euros
The overall volume of real estate investments in the first three months of 2020 was 120.9 million euros, 85% of which were purchases of office and industrial areas, according to CBRE Research data.
According to them, a total area of 55,000 square meters was transacted in the first quarter of 2020, 50% less than the similar period of 2019. Of this area, net demand represented 41,500 sq.m, while negotiations and contract renewals represented an area of 13,100. The western part of the Capital attracted about half of transactions.
“Romanian investors continued to be active this year, with an average purchase value of 7.5 million euros and a market quota of 19% of total transactions. Further on, although more on-going transactions might be delayed, we estimate that the office sector remains the most active, but pleasant surprises may come from the industrial area market,”said Gijs Klomp, Head of Investment Properties, CBRE Romania.
As for deliveries, about 76,000 sq.m of office area were delivered in Bucharest as part of four office projects and another 122,000 sq.m will be delivered until the end of the year, about half of them being already pre-rented.
Rents grew slightly in quarter 1, from 18.5 to 18.75 euro/sq.m, while the vacancy rate remained relatively stable, around 9.9% for office areas in Bucharest.
In quarter 1, 2020, three retailers that chose Bucharest as the first unit and opted for the concept of commercial center entered the retail market in Romania: Breitling, Armani Beauty and Movenpick, which opened stores at Baneasa Shopping City, in the northern part of the Capital. The supermarket chain Biedronka, which announced interest in the local market, could be added to the three names.
The stock of commercial centers remained the same as last year – 3.74 million square meters and no project or expansion was delivered in the first three months of 2020. For the rest of the year, a total area of 180,000 sq.m is in construction in Bucharest, Brasov, Miercurea Ciuc, Satu Mare, Targoviste and Targu Mures. The opening of several retail projects was delayed to the end of the year, due to the Covid 19 situation, but activity on building sites continues.
Rents for retail areas remained stable in quarter 1, 2020, varying around 80 euro/sq.m for areas of about 100 sq.m in performing commercial centers.
In the industrial area market, a net area of 172,400 sq.m was transacted, representing 91% of the total leasing activity, CBRE Research data show. The largest transaction in quarter 1 was the pre - renting of an area of 70,000 sq.m by Ikea in the CTPark Bucharest West project. On the overall, Bucharest attracted 81% of the total leasing activity, while the western and north-western parts of the country, next to the eastern and north-eastern areas attracted 19%.
At national level, an area of 97,000 sq.m. was commissioned in the first three months, thus reaching 4.49 million sq.m. Most of the newly commissioned area, about 80%, is in Bucharest and was represented by the expansion of two projects, WDP Stefanesti de Jos and Eli Park I, while the rest of 20% was commissioned in Brasov and Sibiu.
The vacancy rate dropped to 6.9% at national level, while rents for industrial areas remained stable around the value of 4 euro/sq.m, according to CBRE Research report.