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Investor Guide to Europe 2014
Romania has a great market potential, being 7th in
the Eu27 in terms of population and 2nd in Central
and Eastern Europe (CEE) after Poland. Romania
has a strategic geographical location next to the
Black Sea, with substantial natural resources and
tourism potential.
These trends are also reflected in Romania’s invested stock,
which is lower than Poland’s. The majority of investment
activity is centred on the capital, Bucharest.
Romania benefits from European Union membership, which
provides easy access to European funds, and infrastructure is
growing steadily. Romania benefits from a state of the art IT
infrastructure, and it is increasingly becoming an important
regional hub for the IT sector, generating demand for office
properties.
Most of the stock is held by private individuals and companies,
as well as listed property companies. Institutional ownership
and activity has been relatively modest so far.
The country has high potential for economic growth due to the
underdevelopment of many economic sectors including real
estate. The large retailers continue to expand their national
chains.
The stock and quality of institutional investment products
is gradually improving, with existing properties and new
developments meeting the BREEAM or lEED standards.
Market sizing
Romania
Europe
Invested stock*
(Total stock)
EUR 38bn
(EUR 105bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
0.5%
(2.5%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 0.2bn
(EUR 0.5bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Bucharest (Q4 2013)
office
Retail
Industrial
Current Yield 8.50% 8.50% 10.50%
Min/Max
(10y)
5.60-12.50% 6.50-11.00% 7.50-12.00%
Yield
definition
net initial yield
Source : DTZ Research
RoManIa
* 2012 figures
