The volume of investment in commercial real estate in Romania dropped to only 35 million EUR in the first quarter of this year, according to the consulting company JLL Romania. This is a drop of 75% over the same period last year. Only three business deals were finalized in the first three months of the year. This is four times lower than in the same period of 2017 when transactions worth 143 million EUR were finalized.
However, representatives of JLL Romania note that there are many transactions in a different phase of development that are likely to be finalized this year.
The largest transaction in the first quarter was the acquisition of the Festival Shopping Center in Sibiu by the South African fund NEPI Rockcastle for 21 million EUR.
Another deal was signed by Israeli company Hagag Development, which bought two historic buildings on Kalea Victory Street in Bucharest for 10 million EUR. The company plans to rebuild the two properties and turn them into office buildings.
The second quarter is ahead of the first in terms of property deals after Swedish Skansa sold a building office in Bucharest to the Austrian company CA Immo for 53 million EUR.
Last year, investment in commercial properties in Romania reached 1 billion EUR, up 10% from the previous year.