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Real Estate: JLL: Developers should complete over 200,000 sq.m of offices in 2017
Office developers should complete this year 10 projects for 219,500 square meters, an area on the drop by 37% compared to the one completed in 2016. Most of the projects announced will have to be postponed for 2018, said Silviana Petre Badea, the general manager of JLL real estate consulting company, in an interview for News.ro.
About 14 office projects are being built in Romania and should offer the market 310,500 square meters of office areas, according to data supplied by JLL, upon News.ro request.
75% of the area to be commissioned in the next two years will be built in Bucharest. The rest of 76,000 sq.m will be commissioned in the next two years in Timisoara, Cluj Napoca, Iasi and Brasov.
Until the end of 2017, 219,500 sq.m of offices should be commissioned in Romania, of which 173,500 sq.m in Bucharest, 39,000 sq.m in Timisoara, 18,500 sq.m in Cluj Napoca, 10,000 sq.m in Iasi and 8,500 in Brasov.
The province area has become more interesting for investors, but, although province towns are interesting for office developers, they are penalized for the cash shortage.
“Although there are demands coming from tenants, developers from the province area are locals. For the time being there is a cash shortage in province towns. While in Bucharest there are liquid assets, in province towns they are zero. Cluj and Iasi need new office project developments,” said the JLL general manager.