According to data from the Cushman & Wakefield Echinox, Romania recorded a 131 pct y-o-y growth of the real estate transaction volume during H1 2024, reaching a level of EUR 418 mln, corresponding to the highest growth rate in the CEE. This significant evolution places Romania third in the region, following Poland and Czechia, surpassing Hungary and Slovakia.
The retail and industrial segments were the main drivers on the local market, accounting for 90 pct of the total volume, while office transactions comprised just 4 pct. The total transactional volume at regional level (Romania, Poland, Czechia, Hungary and Slovakia) reached EUR 3.26 bln in H1 2024, a 40 pct growth compared with the same period of 2023. Poland experienced an increase of 113 pct, while the investment volume in the Czech market saw a 19 pct rise. On the other hand, Hungary witnessed a 33 pct decline of the volume invested in income-producing real estate assets, with Slovakia registering an even more pronounced contraction of 73 pct.
In Romania, 38 transactions were recorded throughout H1, compared with 17 in H1 2023, according to the Romania Investment Marketbeat report released by Cushman & Wakefield Echinox.
Moreover, H1 2024 has been the most active first semester since 2017, while H2 is usually stronger in terms of transactions.
We have witnessed a rebound of the investors' interest in the local real estate market in H1 2024, with an increased activity being observed especially from the existing players in the country. The forecast for H2 of this year remains positive, in a context characterized by more relaxed financing conditions and by stabilizing prices. Therefore, highly significant transactions are expected to be closed in the coming months, particularly on the retail and office segments, as the total 2024 transactional volume is due to be in the region of EUR 1 bln, a normal yearly level for the local market over the past decade.
Cristi Moga, head of Capital Markets at Cushman & Wakefield Echinox
Retail had the highest volume share (47 pct) in H1, followed by the Industrial (43 pct), Hospitality (6 pct) and Office (4 pct) segments.
The largest transaction closed in the analysed period pertained to the CTP acquisition of six industrial & logistics parks from Globalworth (267,900 sqm GLA) for EUR 168 mln, a transaction through which CTP further consolidated its dominant position in this market segment. Another major deal closed in H1 was related to the WDP purchase of Expo Market Doraly, a 100,000 sqm retail and wholesale centre near Bucharest for approx. EUR 90 mln.
The prime yields have been very stable across all segments in H1, with only a 10 bp spike being recorded for industrial properties compared with the end of 2023. Therefore, the levels range between 7.25 pct for office and shopping centre assets and 7.50 pct for industrial properties.
Will cheaper money in the eurozone stimulate the transaction market?
Will cheaper money in the eurozone stimulate the transaction market?
Walter Herz
Polish real estate market is witnessing the first major investment transactions. The second half of the year will show whether a potential further interest rate cut in the eurozone ...
Is the Polish commercial property market still attractive for German investors?
Is the Polish commercial property market still attractive for German investors?
Szymon Mojzesowicz, CEO Lege Advisors
Despite the difficult situation on the European market due to many unexpected events, Germany is still one of the largest foreign investors in Poland. In recent decades, German com ...
An open door to redefining the commercial real estate market in Poland
An open door to redefining the commercial real estate market in Poland
Walter Herz
The investment slowdown in the commercial real estate sector that we have been observing in Poland for over a year is primarily the result of the tightening of monetary policy arou ...