The value of major real estate transactions concluded on the Romanian market in the first half of the year crashed by 92%, from 815 million euros in the first six months of 2008 to just 62 million euros in the first half of this year, while the rented office area shrank by 60%, to 51,000 square metres, according to data of real estate consultancies Cushman & Wakefield and Jones Lang LaSalle.
The biggest real estate transaction concluded this year was the takeover by businessman Dinu Patriciu of investment fund Fabian, a deal put at 50 million euros, while smaller deals included the full takeover by Immoeast of projects developed by Eyemaxx and European Future Group and the sale of the Zenith mall project in Ploiesti by Lewis Charles. "Uncertainties related to Romania’s economic stability and the country rating downgrade have made international investors lose interest," said Costel Florea, manager of Cushman & Wakefield’s investment department.
Consultants say rent levels are down by just 10% for Class A buildings located in central areas, i.e. from 24 to 22 euros/sq m per month.
In Central and Eastern Europe, the market of real estate transactions took a 90% plunge only in the Czech Republic (-91%), Bulgaria (-97%) and Slovakia, where no major transactions were concluded in the first six months of the year.
"We are not likely to see more real estate transactions in the second half. There are no negotiations for major deals underway, and if any started, they would not be very likely to result in a deal before the end of this year. There is still a major gap between annual yields expected by investors and those anticipated by owners, of around 2%," says Bogdan Georgescu, managing partner of consulting firm Colliers International.
On the other hand, a study conducted by real estate consultancy Jones Lang LaSalle reveals that only 51,000 sq-
