Currently, the yield of prime office space in Berlin reaches a very low level, of 3.85%, although this type of products in big German cities, such as Frankfurt, keep ensuring large profits compared with those in London and Paris, according to data reported by real estate consulting firm JLL.
Adrian Karczewicz, Head of Divestments CEE within Skanska Commercial Development Europe, said Romania and Hungary are two markets offering quality products at extremely attractive yields in terms of prime office space in their capital cities. Thus, the yield in Bucharest reaches 7.5% and that in Budapest stands at 6.75%, nearly twice higher than yields registered in countries in Western European.
According to Karczewicz, countries with such yields attract a growing number of global players wishing to obtain both profit and diversification for their asset portfolios.
The investment volume on the Romanian real estate market is estimated at EUR340 million in the first half of 2016, up 80% from EUR187 million registered in the same period in 2015. Nearly 48% of the total investment volume was registered in Bucharest and the bulk of transactions was recorded in the retail, office and industrial space sectors, with 45%, 38% and 17%, respectively.
Cushman & Wakefield announced that retail park Sibiu Shopping City in Romania’s central city of Sibiu was acquired by South-African investment fund New Europe Property Investments (NEPI) from Argo group, for EUR100 million.
Romania also witnessed the entrance on its market of new companies, such as Logicor and the European industrial division of Blackstone, which acquired Immofinanz portfolio.