„The positive evolution of the local real-estate market brought over 1,425,000 sq m GLA of new retail, office and industrial completions last year in Romania. The market value of these properties is estimated at over 1.3 billion Euro, marking a 21% annual jump.” says Cristian Negrea, Head of Valuation Department at Activ Property Services.
The main source of growth came especially from the industrial sector where completions were 63% higher than in the previous year, but there was also registered a hardening yields’ evolution in prime properties.
Approximately 38% of the total value of 1.3 billion Euro is represented by new office buildings, followed by industrial new stock that represents 36% of total value and retail deliveries (shopping centres, retail parks, big-box units) totalling 26% of total.
There were included in the analysis all the major new retail, office and industrial buildings of 3,000-5,000 sq m GLA completed in 2018 at national level, both speculative and owner-occupie
Retail openings totalized 270,000 sq m GLA last year, including new shopping centres of 43,600 sq m GLA, new retail parks of 107,500 sq m GLA and big-box retail warehousing of 119,000 sq m GLA. Last year’s main change was the significant jump in retail parks development pace, the new stock being more than triple as compared with 2017.
Retail properties’ value is estimated at 340 million Euro, representing a 4% increase as compared to 2017.
Yields have registered a slight hardening tendency in 2018, with positive effects on the market value of properties included in the analysis. Prime yields decreased by an average of 25 bps, reaching levels of 6.75-7.25% in Bucharest and 7.75-8.25% across the main cities for retail / office sectors. Prime industrial yields have average levels of 8.5-9.0%.
The complete article, with information about industrial and office spaces, can be viewed on our valuation website: https://www.evaluari-proprietati-romania.ro/stiri/prorietati-livrate-in-2018.html