The real estate developers plan for next year in Romania a record area of projects, namely more than 700,000 sq. m, representing more than EUR 800 million investments.
The office developments are followed in the top of the developers’ preferences by the retail projects and the logistics and industrial projects. The record deliveries scheduled for next year for all the market’s segments show a recovery of the investors’ confidence in the profit making potential of Romania, as well as of the final consumers and companies, according to a JLL study.
There is also a reverse of the real estate development activity growth on some segments, namely a growing vacancy rate and pressure on rents, in the conditions the market will balance in favour of the tenants.
"Following an year, 2015, where the vacancy rate on the office market has decreased to nearly 13.1 pct, and the rents remained constant, the large level of new deliveries will result in the vacancy rate growing trend and, by consequence, in a slight rent decreasing trend, on the background of a constant growth in latest years ", has declared Marius Șcuta, National Director, Head of Office Department and Tenant Representation JLL.
On the retail market new project will be delivered totalizing more than 237,000 sq. m, leading to the nearly 10 pct growth of the current stock, estimated at 2.8 million sq.m. Most of the deliveries are new projects (85 pct.), and Bucharest will attract more than a half of these investments (125,000 sq. m).
By the end of this year are scheduled for completion logistics and industrial project of 15,000 sq. m, so the total modern stock is nearly 2 million sq. m, while approx. 195,000 sq. m will be delivered in 2016.
"Even if we see an increase logistics and industrial projects development, investors still remain cautious on the logistics, so that most of the spaces will be built under pre-lease agreements; most projects are extensions of the already existing major parks, which also shows a cautious approach of the developers, who prefer construction in phases. Regarding industrial production spaces, developers are choosing investment destinations based on the availability and cost of labour required by companies renting the spaces ", says Cristina Pop, Head of Industrial Agency JLL. (source: profit.ro)
