The Romanian industrial market will see an interesting evolution this year, leading speakers at CEDER 2019 believe. In terms of yields, Razvan Iorgu, Managing Director CBRE Romania, thinks that Romania is still behind other CEE countries, but “due to some special transactions that will take place this year in the office and especially the industrial sectors, things will change dramatically. We shall even see an industrial transaction with a yield below 7%,” he pointed out. Prime yields in Romania currently stand at 7,75% (Q1 of 2019) for the industrial sector, compared to 6% in Poland, 5.5% in the Czech Republic and 7.25% in Hungary. Yields are usually affected by liquidity, demand, consumer confidence, politics and the economy.
Ian Worboys, CEO of P3, said during CEDER that is why prime yields in Germany are under 5%, in the UK under-4%, while in Romania they are around 7-8%. “If the government will be seen as more transparent and honest, this will bring investors in, which will in turn bring yields in. I think that there are signs that this year will see the end of the growth in yields”, Worboys explained.
Ana Dumitrache, Country Head of CTP Romania, also sees yields for premium properties currently at 7-8%, but says that they depend on many factors. “There are different tenants for different types of developments. Looking back at the evolution of yields in Romania, we have not even reached the minimum yield over the last ten years. This shows some stability, which is good.”
Raluca Nastase, partner at the law firm Biris Goran, thinks there is room for optimism: “We do see a lot of investment and clients coming from abroad and asking how they can buy good land, how long it will take to get permits and so on. We are very optimistic regarding the future and it’s a good sign that the market is stable.”
