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October 18, 2021

Investors cautiously optimistic on real-estate market improvement

The effects of the global economic and financial crisis, and the marked fall of the internal economic activity forced the investors to take action with maximum precaution on the real estate market from Romania, in contrast with their optimism registered during the period of quick expansion of the market, reads a BNP Paribas Real Estate research report released yesterday. The investors adopted a cautiously optimistic stand about the future evolution of the real estate local market because a number of factors maintain a high degree of uncertainty and risk, such as the increase of the non-occupation rates or the diminution of the rentals and of the renting activity.

The attitude of the institutional investors towards the Romanian real estate market differs subject to the type of investments that they intend to make and the adversity to risk. The funds with low-risk investment policies decreased or stopped for the time being the prospecting of the Romanian market, until the local market gets balanced and registers an improvement of the economic indicators. But, there are a few investors from this category who are in active expectancy. The most active funds are those which try to invest in products with relatively big associated investment risk at a yield of 10 per cent. But there are also opportunist investors who are looking for distressed properties with a yield over 12 per cent. This category is now active and in abeyance.

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