Real estate transactions expected to reach EUR 2 billion in 2007
22 November 2007
The value of this year's real estate transactions could amount to EUR 2 billion, considering that EUR 1.5 billion worth of deals were signed in the first nine months of 2007, most of which were on the retail market, followed by the office segment, and the industrial sector, according to a report made by the DTZ Echinox real estate consultancy company.
In Bucharest, most transactions were made on the office segment, while in other cities, retail ranked first. Most investments were on the office segment.
”The value of transactions will probably reach EUR 2 billion by the end of this year, and this level could also continue into 2008,” said Cristian Ustinescu, Capital Markets Manager at DTZ Echinox.
According to the Cornerstone brokerage company, deals signed in the first five months of 2007 account for some 60 percent of the value registered for the whole of 2006.
Colliers global commercial Real estate services company analysts identified 19 transactions totalling EUR 850 million in 2006. The Arco Real Estate consultancy company said Romania is seen as the country with the most foreign direct investments on the real estate market in South-eastern Europe.
These investments are estimated at EUR 10 billion in 2007. This year's major transaction took place in the city of Constanta. The Trigranit developer sold the Polus Center to the Immoeast investment fund for EUR 185 million. In Bucharest, the largest transaction was the takeover of the America House office building by French Naxis group for EUR 120.3 million.