Considered to be one of the sturdiest markets in today’s world, Romania’s real estate market has outshined other markets quite diligently. It has come a long way since the decade-old global financial crisis. Investment experts are of the opinion that robustness of the real estate sector may plummet if the local buyers stop investing in the properties here.
Even though there has been a prominent increase in the real estate prices and demand in 2017, the prices have dropped by 60% to RON 20.7 million in 2018. However, due to certain foreign investment and sales that boosted the overall real estate pricing regime. One of the biggest sales of the season was the sale of the Bridge and Oregon Park offices in Bucharest. It is expected that Romania’s economy will further see an increase in its GDP (by 4%), thanks to the real estate investment sector.
One of the largest players in the real estate market in Romania is the Dedeman group. They have been the sole player and investor in the purchase of the Bridge project in Bucharest by a whopping EUR200 million. The other relevant and eye-opening deals that helped strengthen the Romanian economy were the purchase and acquisition of various corporate offices and centres in Bucharest by One United Properties. Even the purchase of the Ordea Shopping City by Sapient Center Oradea also made a lot of news.
Another important ask for any real estate investor is how the future of this industry looks like in any country? It is quite obvious that the major contributor to a robust real estate economy has been Bucharest. On the other hand, other regions or cities have not seen much of a difference so far. Colliers International Romania, one of the leaders in Global Real Estate market, have estimated that the future of Romanian real estate sector looks promising with a few negatives. Even though there are certain loopholes in the administrative section of the society, experts have opined that Romania has a bright future. This is due to its low labour costs when compared to Eastern Europe.
Foreign investments are not just limited to completed projects in Bucharest and development of smart cities, but also land areas. It may be a bit difficult to invest in a free plot within the city range (as most of them are occupied or have one or the other project running), but areas like Herastrau-Aviatiei in Bucharest has quite a fan following in terms investment from real estate investors.
According to future estimations, growth figures are estimated to rise over 7 million sq. m. when compared to the current 3 million sq. m. mark read all the news on BlissImobiliare.ro