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CO E S E C T O
L E ST AT
RE A
M A N I A
IN RO
FLANDERS INVESTMENT & TRADE MARKET SURVEY
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TABLE OF CONTENT
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The economic growth has been widely spread across all sectors in Romania, the highest share to GDP
formation being allocated to services, followed by industry, construction and agriculture.
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The residential market has followed a positive trend over 2017 and 2018, registering increases in development
pipeline and new completions, active levels of demand and an accelerated growth in average prices. A new
residential supply of 53.301 units was completed in 2017 in Romania, representing a 2% raise compared to
2016 and the 4th consecutive year of growth. However the activity on the residential sector was still below
the top performance recorded in 2008.
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The residential demand has also registered increases as from 2016, especially helped by an accelerated
increase in salaries (+15% EUR), residential sales witnessing positive results for both the new and old
properties, stimulated also by the “First House” governmental program and 5% VAT facilities.
Residential prices have started an upward evolution from 2015 accelerating year-by-year and reaching a
10% increase throughout 2017. Prices will continue to increase in 2018 and the demand will maintain at
higher volumes than deliveries.
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3.2 OFFICE
The Romanian office market recorded a rapid growth starting 2003 mainly due to the foreign newcomers
companies that profited from the economic growth to extend their operations, to the relocations and also
to the expansions of the existing foreign companies. 2003 marked the rise of the business park concept,
which over time proved to be a success. Starting 2006 the developers became more and more interested in
the efficient, good quality buildings, with large floor plans and pleasant landscaping, and started similar
projects which, because of the high demand, were all fully leased upon delivery in 2007. The office segment
continued to perform remarkably well during 2008 as pre-existing unsatisfied demand corroborated with
increasing development activity initiated in the previous years contributed to a further market expansion.
The office segment was hit by the economic crises in the second half of 2008, the next 2 years to come
registering significant contractions of demand and strong increase in vacancy rates. In terms of availability
2011 was the first year since 2008 when office take-up surpassed new supply. The office market has shown
signs of recovery as from 2013 when due to a stable demand rate correlated with the relatively low level of
new completions, the vacancy rate has registered a downside trend.
In 2016 the office market was considered by the analysts the most active segment of the real estate market,
registering an impressive take-up (Bucharest 41% higher than in 2015), a significant volume of new deliveries
and a demand of 50% higher than in the boom years.
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3.3 RETAIL
Due to the strong economic growth starting 2003, the retail market recorded a quick development, focusing
on the development of new shopping centers, high street shopping and retail parks. During 2003–2008, the
demand for retail was in a continuous upward trend, the sector becoming the target of international
retailers and developers. The year 2008 was one of the best years for the retail segment in Romania since
1989. But the international financial crisis at the end of 2008 affected the Romanian retail market too, the
trading environment started to deteriorate and, as a result, most of the retailers slowed down or postponed
their expansion plans. In 2009 the overall retail activity continued to decrease while 2010 was marked by a
more optimistic atmosphere among retailers due to the slight stabilization of sales, although the
improvement of the sector was very modest. As a consequence the offer of retail units was higher compared
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3.4 INDUSTRIAL
Due to the Romanian economic growth in all sectors, there were recorded high levels of industrial space
demand throughout 2004–2008. 2007 was a glorious year for the overall industrial sector. The Romanian
industrial market faced the global storm at the end of 2008 rather well. During 2009 and 2010 the supply
recorded a slowdown, as a number of new projects or extensions of existing projects confronted delays
due to capacity and financing constraints. The years 2011–2013 were characterized by stability in terms of
industrial activity with low delivery and low demand, same vacancy rate and same rent levels.
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TiMon
http://timon.ro/
RomTherm
https://www.romtherm.ro/en/
5. REFERENCES
Disclaimer
The information in this publication is provided for background information that should enable you to get a picture of the subject treated in this
document. It is collected with the greatest care based on all data and documentation available at the moment of publication. Thus this publication
was never intended to be the perfect and correct answer to your specific situation. Consequently it can never be considered a legal, financial or
other specialized advice. Flanders Investment & Trade (FIT) accepts no liability for any errors, omissions or incompleteness, and no warranty is given
or responsibility accepted as to the standing of any individual, firm, company or other organization mentioned.
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