During the Primary and Secondary Investment Market panel, moderator Robert Miklo, Director for Investment Services at Colliers, asked whether it was a good moment to invest in residential on the Romanian market.
Ashton Topolinski, Partner, Head of Marketing & Branding and Sustainability Lead of InteRo Property Development, said it is definitely a great time to invest, despite some struggles: “Yield is not as high as it used to be for investors. And the values of the assets are not increasing as fast as previously, given the shift in the economy. But in regard to the growth of the economy, in Bucharest itself, it is the most affordable capital eastern Europe. Also, there is so much opportunity with new businesses coming, (…) lots of interest and investors who want to maybe go beyond the borders and come to Romania, they’re interested in Romania more than ever.”
She continued by saying that investors are most interested in high-quality projects, so, as a developer, it is important to make sure that a project has the right amenities, the right community and complies with ESG requirements. She said that the projects her company develops are “both great for people that are looking to invest, but also looking to live an exceptional lifestyle” and gave the project Pajurei 3 Residence as an example of “project you will not find anywhere [else] in the country”. When asked whether people bought apartments in the project for themselves or to invest, she said that their buyers are a mix of both categories. She then gave the example of Sunlight Residence as a better investment choice, with an approximate average yield of 8% and 30-40% value appreciation.
Later in the discussion, Doron Klein, Deputy CEO of AFI Europe & CEO of AFI Europe Czech Republic & Romania, also talked about the attractiveness of their projects for investors: “We’re not looking at the exit yields in the next foreseeable horizon, but we do see the certain potential capital appreciation of all our residential projects. (…) As long as the running yields are sufficient to cover the cost and then some, I think that we should all see and know to appreciate the value appreciation at the end of the way, whenever this may be. I think that yields will compress for residential.” He continued by saying that investors are very attracted to their kind of product for two main reasons. “First of all, the income is very diversified, which provides a great deal of comfort to many potential investors. And two, because we are answering certain needs and necessities.”
