Real-estate developers plan to deliver a record-level surface area in Romania next year, in excess of 700,000 square meters, the total investment surpassing EUR 800 M, a JLL recent report shows.
Investments in office buildings remain at the top of the real-estate developers’ preferences, followed by retail, logistics and industrial projects.
The record deliveries scheduled for next year on all market segments reveal the rebound of investor confidence in Romania’s potential to yield profit, but also of the confidence of end consumers and companies, the real-estate consultancy company’s communiqué shows.
The flipside of the growing real-estate development activity on certain segments is the growth of the vacancy rate and the pressure on rents, against the backdrop in which the market will lean in favour of tenants.
The most important office building projects that will be delivered next year are: Bucharest One – 50,000 squares metres (developed by Globalworth); HBC 2&3 – 45,700 square metres (Atenor); Oregon Park – 45,000 square metres (Portland Trust).
Projects totalling a surface area of 237,000 square meters will be delivered on the retail market next year, which will lead to an approximately 10 per cent hike in the existing stock, which is estimated at 2.8 million square metres. Most of the deliveries are new projects (85 per cent), and more than half of these investments (125,000 square metres) are concentrated in Bucharest.
The biggest projects to be delivered next year on the retail market are the following: Park Lake Plaza Bucharest – 67,000 square metres (Sonae Sierra/Caellum Development); Shopping City Timisoara – 55,700 square metres (NEPI); Piatra Neamt Shopping City – 29,000 square metres (NEPI).
Logistics and industrial projects totalling 15,000 square metres are expected to be completed by the end of this year, so that the total stock of modern surface areas stands at approximately 2 million square metres, with around 195,000 square metres set to be delivered in 2016.