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Study: Romania ranks first for opportune destinations of European commercial centers
Romania ranks first in the top of opportune destinations for investors in commercial centers in Europe, according to a study of real estate consulting company Savills.It is followed by Poland, Hungary, the Czech Republic and Austria.
“Romania ranks first especially because of the rapid growth of consumption expenses and retail sales estimated for the next 5 years, of 6.1% and 6.2% per year on the average. Even though Romania’s economy is volatile, strongly connected to that of Greece by commercial and financial relations, the government has made progress about the fiscal system and by reducing budget deficit in 2011. The unemployment rate is relatively low – 7.4%, while the density of commercial centers is one of the lowest among the 16 markets analysed (84 sq.m./1,000 inhabitants), offering good development opportunities,” the study shows.
At the same time, the market profitability of commercial centers in Bucharest is of 8.75%, the highest of analysed markets, after Dublin.“In all states analysed, fiscal corrections will put pressure on expenses. Some countries will be less affected than others, as in the case of northern countries and some of central and eastern Europe, on one hand because of commercial links with areas outside Europe and on the other hand because of the resistance of labour force, allowing them to maintain domestic demand constant. In this context, we estimate that in the next 12-18 months consumption will be modest. On the overall, retail sales will begin to recover in 2014. On the average, we expect an increase of retail sales by 1.9% per year in analysed countries until 2017,” the study mentions.
Next to Romania, there will be exceptions for Poland (4.2%) and Czech Republic (3.1%), according to estimates of the real estate service company.Germany, Great Britain, France, Norway and Sweden are core destinations for investors in commercial centers, especially due to market size, economic stability and stable consumption.
Savills is one of the most important real estate consulting companies in the world, being listed at the London Stock Exchange. The company was set up in 1855 and has now 500 offices and associate firms in America, Europe, Asia Pacific, Africa and the Middle East. Savills is not present in Romania.