www.business-review.eu Business Review | June 2022
6 REAL ESTATE
Positive outlook for real estate market in 2022 Romania’s property investment volume in the first quarter of 2022 is estimated at EUR 68.5 million, a value that’s 7 percent lower than the one recorded in the same period of 2021. Analysts expect investments to reach EUR 1 billion in 2022, 11 percent above last year’s total figure, though it is difficult to make accurate predictions in this period marked by uncertainty. By Aurel Constantin ter to 14.3 percent, also due to a significant volume of new offices being delivered during the period. Although most companies have started bringing their employees back to the office, the accommodation process is usually progressive: not all employees are required to work from the office every day of the working week, and to a certain extent, the hybrid practice of combining office and home work continues. The first quarter of the year saw a high level of new deliveries, totalling 73,500 sqm, compared to only 29,500 sqm in Q1 2021. The largest project delivered during Q1 was Sema Office London & Oslo, with a total of AFI Lakeview
O
approximately 31,500 sqm GLA, developed by River Development in the Centre-West submarket. Two projects of roughly 21,000 sqm
ffices accounted for almost 80
Unexpired Lease Term) significantly longer
each were also delivered in Q1. The first one
percent of total investment volumes
than the market average can achieve yields
was phase 1 of @Expo, developed by Atenor
during the first three months, while
below those quoted as prime, with quality
in the North-West (Expozitiei) submarket, fol-
retail accounted for the rest. The largest in-
and ESG compliance (Environment, Social,
lowed by Tandem, delivered by Forte Partners
vestment deal closed in Q1 2022 was the sale
Governance) playing a major role in future
in the Centre submarket.
of the Record office scheme in Cluj-Napoca
transactions.
Another 83,000 sqm are due to be added to the market before the end of 2022, bringing
for a reported EUR 35 million. Speedwell sold the project to AYA Properties Fund from Bel-
OFFICE MARKET
total deliveries for the year to 156,500 sqm.
gium. The second-largest deal in Q1 was the
Demand for offices is improving as the total
This would represent a 36 percent decline
sale of Vitantis Shopping Center in Bucharest,
gross transaction volume in Bucharest during
compared to 2021. The Centre-West submar-
with approximately 36,000 square metres
Q1 2022 reached 69,500 sqm, 17.5 percent
ket will attract almost 60 percent of all deliv-
GLA. Revetas Capital sold the property to
below the previous quarter, but 36 percent
eries expected for the year—over 90,000 sqm.
Praktiker Real Estate, according to a report by
over Q1 2021. On the other hand, net take-up
The largest project expected to be completed
JLL Romania.
increased by 30 percent compared to the pre-
by the end of 2022 is the second phase of One
vious quarter, to 45,600 sqm and more than
Cotroceni Park, developed by One United
doubled when compared to Q1 2021.
Properties, adding around 34,500 sqm to the
Q1 2022 marked a decrease in prime industrial yields, from 7.75 percent in the previous quarter to 7.5 percent. After consecutive
New leases had the largest share in total
Centre-West submarket. The second building
contractions in the previous two quarters,
transaction volumes in Q1 2022, with approxi-
in AFI Tech Park, developed by AFI Europe,
prime office yields remained flat during Q1
mately 60 percent of the total, followed by
will increase the stock of the same submarket
2022, at 6.75 percent. Prime retail yields were
renewals and renegotiations, with 21 percent.
by 24,500 sqm. The vacancy rate is likely to
also stable during the period, at 7.25 percent.
The vacancy rate slightly increased during Q1
drop in 2022 due to the lower number of new
Prime assets with WAULT (Weighted Average
2022, from 13.7 percent in the previous quar-
deliveries over the next three quarters.
