Bogdan Sergentu, Head of Valuation & Consulting, Cushman & Wakefield Echinox: “The evolution of the Romanian real estate market both during the pandemic and also in the present context of the conflict in Ukraine, has generally been positive, with the industrial & logistics and residential segments gaining momentum. The retail and office markets have undergone different evolutions, with the prime assets maintaining or even increasing their value, as the secondary projects have suffered from restrictions and the from the overall market changes.”
The industrial segment recorded the largest compression of prime yields in 2021, prime yields which decreased by approximately 75-100 basis points. There is a growing demand for logistics spaces and the major developers have expanded their portfolios by delivering new spaces, as a result of the low vacancy rates across the country.
In regards to the retail segment, there has been a yield compression for prime properties and an increase in sales for a series of retailers. The more pronounced increase in online sales in certain sectors and the change in consumers’ behavior have begun to generate changes in the Romanian retail landscape. While retail parks have benefited from this context, the classic urban shopping centers still need to recover from the restrictions imposed to combat the pandemic.
The office market is going through a period of more pronounced segmentation and a clear distinction between top buildings, which benefit from compressing yields and higher values, and less attractive buildings, which now register significant structural vacancies.
Cushman & Wakefield Echinox has gone through a busy 2021, in a highly competitive market, and in the exceptional conditions of the pandemic, while dealing remarcably with the challenges posed by the inclusion of new clients in the company’s portfolio. Offering a national coverage, Cushman & Wakefield Echinox has a strong and stable valuation team with an average experience of over 18 years in the real estate valuation sector.
