“We are noticing an increase in weight and interest of Central Europe in Romania. I’m still seeing a lack of investors from the Middle East, the lack of capital from that area. I think this is more of a cultural argument,” Mihnea Serbanescu said on ZF Live.
Romania remains an attractive country for real estate investments, as the yield stands at 7% for a premium product, while not going above 4% or 5% on the European markets.
“When we conduct an evaluation we look at the sustainability of rents, the average duration of leases, so that the yields depend (on the project i.e.).”
The yields are often lower than the interest rate, and there are no expectations of an increase in prices, so it would be reasonable for any investor to wait, Mihnea Serbanescu added.
“I think we will see a slowdown of investments at any level in the first part of 2023.”
(English version by Loredana Fratila-Cristescu)