Thus, the retail segment in Bucharest is considered “hot”, the classification dominated by the retail and office segments in Central and Eastern Europe. Moscow is attractive for investors on both segments, while Bucharest and Prague are attractive mainly on the retail segment.
These markets are expected to see some significant growth of capital in the medium term, as yields compress and rents grow, which compensates for the increased risk perceived on these markets, the company notes.
Thus, Romania is following the trend seen throughout Europe, namely increased attractiveness of realty, but which is not necessarily going to bring more real estate transactions.
The overall value of real estate transactions overshot EUR200 million in the first six months of 2011, but the bulk of deals involved office buildings.