Commercial properties in Romania become more attractive to investors
JLL analyzed the real estate market in Romania in 2022. According to the results, the demand for commercial facilities in the country increased, and the volume of transactions here increased by 40%. A total of 1.25 billion euros worth of transactions were conducted in the sector, which is the maximum value for the Romanian market since 2008.
Despite last year’s success, analysts predict that in 2023 the volume of commercial real estate transactions will remain at previous periods – in the range of 800-900 million euros. Investors who have sufficient resources not to resort to the services of banks will feel most confident in the Romanian market. As far as financing options are concerned, higher liquidity is expected here.
Experts also note that the yield on real estate in Romania has not shown such strong growth, as, for example, in Poland. In the 4th quarter, this indicator for office facilities was 7%, and the growth in 3 months was only 0.25%. As for the yield in the shopping centers sector, its indicator remains unchanged since 2021 – 7.25%. The industrial real estate market also remains stable – 7.5%. It is noted that despite the strong growth in 2022, the rate of return on commercial real estate in Romania is somewhat lower than in Poland.
If we consider the real estate market in the country as a whole, it is becoming more and more attractive for investment. For example, the average price per square meter in a major city in Romania is 1,418 euros, while in Poland – 2,375 euros.
Since Romania’s accession to the European Union, the country’s real estate market has been growing every year. The construction sector in Romania is developing excellently, with new projects appearing in both the residential and commercial sectors. In addition, the country’s government is trying to attract foreign investors by offering low tax rates and flexible loan terms. The interest rate on mortgages at local banks is starting at 2.2%, on average you can get a loan at 4.4% per annum.
One of the most promising cities in Romania to buy real estate in Constanta. It is a resort city with a port, clean beaches, and good infrastructure. Prices for apartments vary from 40 to 450 thousand euros, and for villas – from 150,000 to 1.7 million euros.
The tourist center of the country is Brasov, near which is located the castle of Dracula. Buying real estate here is profitable in terms of getting income from short-term rentals, as the city is extremely popular among tourists. Prices for apartments in Brasov start from 40 thousand euros.