Calea Victoriei, the most representative commercial artery of Bucharest, can attract investments of more than 300 million euros, in the coming years. The construction of 7 new office buildings and six hotels is expected. According to the economic newspaper Ziarul Financiar
Despite the effects of confinement and the increasing number of people infected with Coronavirus, the Romanian real estate sector leaves positive news in almost all segments.
As some experts already expected, the luxury residential segment does not suffer from the effects of the situation generated by the Covid-19. This was one of the conclusions of the conference organized by Cushman & Wakefield Echinox and the Dentons Romania law firm.
According to a report by the consulting company JLL, investments in new housing in Bucharest are among the most attractive in Central and Eastern Europe. The yields obtained from the rental, especially 2-bedroom apartments, with a useful area of approximately 55 m2, can vary from 5% to 6.5%.
The big developers of Romania continue with the projects already started despite the measures imposed by the COVID-19 epidemic, but they closely follow the evolution of the market. It is clear that the residential market is largely influenced by the current situation and signs of a slowdown are already being seen. The consulting company Cushman & Wakefield Echinox believes that this year we will have a linear market, without significant rises or falls, as long as the health crisis is under control.
Below we have compiled some economic data, opinions and declarations that may represent a point of departure for the Romanian economy and especially for residential real estate market. From prudence in the face of current uncertainty, we will have to wait for this second quarter to pass to draw certain conclusions about the course of the economy and how it affects the real estate market, meanwhile, we share with you how the first quarter of 2020 has been in Romania.
The end of the first quarter of 2020 is linked to the beginning of the effects of the pandemic caused by Covid 19. Social distancing measures and the state of emergency produce a different economic and social reality. Romania's economy, including the property market, has not been isolated from this problem.
The effects of COVID-19 are not yet visible on the house price of the first quarter of 2020. In Romania, movement restrictions began on March 9 and on March 16 the state of emergency was established. This exceptional situation has so far not had a visible effect on the price of housing. The annual rate of growth in prices requested by homeowners has grown to 9.5% today, from 7.4% where it was in the last quarter of 2019.
They are undoubtedly the good data of the last two years, which have attracted Morgan Stanley, which is preparing to take the real estate assets from AEW Europe of Romania, in the first quarter of this year. These assets belong to the PBW II investment fund that, after reaching maturity, will return the capital to its investors.
At least 16 old industrial platforms may become new residential or commercial projects in the coming years.
During 2017, the claims of housing sellers in Romania, both apartments and houses have maintained the growth trend According to a quarterly report published by Analize Imobiliare, a platform supported by Imobiliare.ro, e recession.
The total value of land transactions for real estate projects, except for the industrial segment, grew significantly last year compared to 2016, surpassing the value of 350 million euros nationwide, according to the data collected by the real estate consulting company Colliers International.