The total value of real estate investments registered in Romania in the first quarter of this year was 202 million euros, up 69% compared to the same period in 2023, informs Colliers in its ‘CEE Investment Scene Q1 2024’ report, released on Tuesday.

According to the cited source, Romania has thus demonstrated the best performance compared to the other five major economies (Bulgaria, Czech Republic, Hungary, Poland and Slovakia) in Central and Eastern Europe (CEE).

Colliers’ consultants believe that the outlook for the real estate market remains quite solid in the region, with environmental, social and governance (ESG) criteria becoming increasingly relevant in the decision-making process of real estate investors, banks and tenants.

Across the six CEE countries, total investment volumes fell, overall, by 15% compared to Q1 2023, to around 1.2 billion EUR. In this context, the Czech Republic became the new leader in the region, with investment volumes accounting for 46% of the region’s total, surpassing Poland, which had a combined share of 30% of transaction volumes in Q1 2024.

Overall, the expert report highlights that results varied significantly across the region, from a 94% drop in activity in Slovakia to a 69% increase in Romania.

The first three months of 2024 brought Romania a 16% share of the region’s total investment volume, compared to 5% – 7% in the years before the pandemic.

In addition, the retail sector was dominant locally during the period under review in terms of trade activity, with around 66% of the total commercial real estate investment volume, followed by the hotel sector (around 21%).

Moreover, retail is the new leader in the CEE region as well, accounting for 43% of transaction volumes in the period January – March 2024, followed by hotels (20% share) and industrial and logistics (I&L) – with 15%. On the other hand, office investment volumes continued to decline, accounting for just 13% of CEE volumes.

Romania’s capital has one of the highest investment returns in the region for the industrial and office building sectors (7.5% for prime assets), but also retail (7.25%), notes the report.

Colliers is a leader in real estate services and investment management, with operations in 68 countries and 19,000 professionals.

AGERPRES