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Real estate: Value of real estate transactions drops 4.5 times in quarter 2
The value of transactions with real estate projects in Romania in the second quarter amounted to 66 million euro, a significant drop against the first quarter when there were transactions of 300 million euro, according to CBRE.
In the first quarter the value of real estate transactions was 369 million euro, rising about 3 times compared to the same period of 2013 (125 million euro). In these conditions, investors bought in the first 6 months properties exceeding the value of all properties bought in 2013.Romania ranks 4th in Central and Eastern Europe after Poland, Russia and Czech Republic for the value of real estate
transactions recorded in the first 6 months.
Last year Romania attracted investments of 229 million euro, on the rise by 25% compared to 2012, while in the first quarter of 2014 it attracted 85 million euro.The most important transactions of 2014 were the joint Upground project (offices and residential) bought by Globalworth Real Estate from an investment fund belonging to Deutsche Bank, the purchase of Innovations Park (industrial), Modlova Mall (retail), the commercial center Mario Plaza in Bucharest and of the former hypermarket PIC Oradea. The transfer of Charles de Gaulle Plaza from one fund to another belonging to the German company GLL Real Estate Partners was taken into account by statistics.
The evolution of the second quarter reflects the real situation in the local investment market, which is for the moment avoided by real estate buyers, considering that most transactions in the first quarter were transfers between companies with the same shareholders.
Central and Eastern Europe attracted an investment volume of 3.7 billion euro in the first semester, on the drop by 26% compared to the same period of the previous year. Poland was the main target for real estate investors, attracting investments of 1.1 billion euro, on the rise by 3% against the same period of 2013.
Russia ranks second in the area, with 1.2 billion euro, on the drop by 58%. The Czech Republic reported an investment increase from 495 million euro to 673 million euro.