RSS
Real Estate: Real estate market in 2015: Big investments and new buildings
The consulting and audit company PwC Romania expects significant investments this year in the real estate field and the sustained resuming of new constructions especially in Bucharest, Timisoara and Cluj Napoca after the 2014 increase of investors’ appetite for the real estate field.
“In Romania we could see in 2014 an increase of the investors’ appetite for the real estate sector, a series of transactions with properties being recorded during the year both for the office segment and the commercial one as well. We expect to see in 2015 significant investments in this sector, and sustained resuming of new constructions,” said Francesca Postolache, partner, audit services and leader of the service team for the real estate sector at PwC Romania.
According to a report made by PwC and Urban Land Institute, the high competition for class A active stock in the main real estate European markets determines investors to shift their attention to recovering markets and stock in the secondary class.
The report shows an increase of real estate opportunities in many towns affected by the latest recession like Madrid (rising 16 positions), Athens (23 positions), Birmingham (14 positions), Amsterdam (17 positions) and Lisbon (17 positions).
The first five real estate markets in Europe could be Berlin, Dublin, Madrid, Hamburg and Athens. In Romania the value of real estate transactions grew last year to 1.2 billion euro from 300 million euro in 2013. According to DTZ Echinox, 45% of total is represented by purchases of retail projects, 30% offices, the industrial segment attracted 15% of transactions, while land purchases 10%. The company estimates that the advance of investment markets will continue for the next few years.