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Romania’s real estate market may see a dip in 2021
The volume of investments in Romanian commercial real estate assets may see a dip in 2021, as some buyers may remain on the sidelines amid a lack of clarity about the future revenue stream, according to the 2021 annual report released by real estate consultancy firm Colliers.
The firm's consultants foresee a total volume for commercial real estate transactions of over EUR 0.5 billion (down from EUR 0.9 bln in 2020).They also see room for a slight decrease in yields by the end of the year for prime office and prime industrial if the economy, political and monetary system are satisfactory.
Given the nature of the investment market and the fact that some deals can take years to close, it is likely that 2021 will look a bit worse, although activity will continue, Colliers concludes.
For comparison, Romania started 2020 with some EUR 500 mln worth of big deals in the due diligence phase, while for 2021, the volume is at around EUR 150 mln.
This is among the first warnings openly voiced in the real estate market, amid many forecasts assuming either close return to pre-crisis status or post-crisis patterns (such as more space per employee) that would increase demand. Faced with non-essential retailers shifting to online and companies keeping their employees at home while subletting their offices, the projections have turned more realistic.