Due in part to intense pre-rental activity on the office segment, the tenant confidence index is at the highest level registered compared to the same period in 2011, while demand for office space remains positive and considerably higher that growth expected in the supply of office space available in the near future. The gap between supply and demand has widened in the past quarter, which led to a sudden rise in expectations regarding rent prices in the next quarter, a positive trend apparent for the first time in the last four years, shows a poll by The Royal Institution of Chartered Surveyors Romania (RICS Romania), which surveyed around 1,000 real estate companies worldwide.
Responders consider the rent market and the occupancy rate on the office market in Romania is consolidating after a three-year period of lower interest.
“The impact of good results registered in agriculture and industry has helped the Romanian economy post a growth of 3.5% of GDP in 2013, which is clearly reflected in the positive sentiment on the real estate market in the first quarter of 2014,” said Ovidiu Prunea, board member with RICS Romania.
On the other hand, the real estate investment market is more moderate. The survey shows demand for investments has continued to grow (+29%), but at a more modest rate than during the previous two quarters (60% and 40%, respectively). Expectations on the growth of rest estate asset values in the next quarter are also moderate.