New market study, "Romania Real Estate Report Q4 2010", has been published

Oct. 10, 2010 - PRLog -- Our interviews with in-country sources in Romania in early 2010 and in the middle of the year revealed a particularly grim picture of the commercial Real Estate sector. Market protagonists had not foreseen how severe the impact of the global financial crisis would be. Nor did they envisage the extent that multinationals that had planned on building new factories and installations would divert investment to other nearby countries. Business sentiment has also been hurt by Romania's domestic political problems. The main consequence has been an extraordinary oversupply of commercial property, which is detailed in this report. BMI's sources report that vacancy rates that exceed 20% are the norm. However, the lack of commercial real estate transactions has meant that there has not been a downwards adjustment in prices and capital values - to fire sale levels. As a result, the recent slump in rents has resulted in a sharp fall in observed net yields over the last year or so.

Our in-country sources remain bearish. In most of the countries surveyed by BMI, commentators are looking for rental rates to improve somewhat in 2011. This is not the case in Romania. At best, our incountry sources are looking for rents to track sideways next year. At worst, rents could fall by another 10% - and from levels that are well below those that were prevailing prior to the onset of the global financial crisis.

In some sub-sectors of the Romanian Real Estate market, yields were running at an extremely high 20- 30% in 2007-2008. Our interpretation of this is that some market protagonists accurately foresaw the extremely difficult conditions which were about to develop. Looking forward, we expect that yields in the Romanian Real Estate market will rise over the forecast period, from unsustainably low levels. Nevertheless, we doubt that, in 2014, they will be anywhere near the yields that were prevailing prior to late 2008.

Key Features Of This Report

This is the latest edition of a new series of industry reports published by BMI that seek to identify the key dynamics of the real estate sectors of 44 countries around the world, some of which are developed and some of which are, in every sense, emerging markets. Once again, the questions that we seek to answer for each country remain as follows: what are the main issues that will matter to actors in and around real estate development in the country concerned, both over the long and the short term? What are the main constraints that they face? What are the key insights that one garners when one compares the real estate sector of the country concerned with its peers in other countries?

In Q3 we introduced a very substantial new improvement to the reports. We incorporated data and qualitative observations provided to us by commercial real estate agents operating in the countries we survey. As a result we gained a much clearer picture of the balance between demand and supply in each of three main sub-sectors - office, retail and industrial. We also introduced a new approach to the forecasting of rental yields, which is discussed in the methodology sector of this report.

In Q4, we have incorporated a lot of new data in relation to rents and yields in 2010. We gained this data by way of a new round of interviews with our in-country sources in mid-2010. In some cases, the latest information from our sources has caused us to make significant revisions to our forecasts for 2011-2014. We asked our sources to indicate what growth in rents is likely for 2011. We explain their answers in the Forecast Scenarios.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/87278_romania_real_estate_repo...

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Romania Real Estate/Construction SWOT
- Romania Political SWOT
- Romania Economic SWOT
- Romania Business Environment SWOT
Regional Real Estate Overview
- Table: Central And Eastern European Office Markets At A Glance - Rents, 2009-2011 (EUR per m2 per month)
- Table: Central And Eastern European Retail Markets At A Glance - Rents, 2009-2011 (EUR per m2 per month)
- Table: Central And Eastern European Industrial Markets At A Glance - Rents, 2009-2011 (EUR per m2 per month)
Real Estate Market Overview
- Key Issues
- Comments And Data From In-Country Sources
- Table: Romania's Real Estate Markets - Rentals, 2008 And 2009 (msq/month, EUR)
- Table: Romania's Real Estate Markets - Net Yield, 2008 And 2009 (%)
- Table: Romania's Real Estate Markets - Terms Of Contract/Lease
- Table: Romania's Real Estate Markets - Available And Vacant Space
Industry Forecast Scenario
- Real Estate Outlook
- Table: Romania's Real Estate Markets - Rentals, 2009-2011 (msq/month, EUR)
- Table: Romania's Real Estate Markets - Net Yield, 2008-2014 (%)
- Construction Outlook
- Table: Romania's Construction And Infrastructure Industry, 2007-2014
- Macroeconomic Outlook
- Table: Romania - Economic Activity, 2007-2014
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Europe Real Estate/Construction Business Environment Rating
- Romania's RECBER
- Project Finance Ratings For Central And Eastern Europe
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Central And Eastern Europe Overall Project Finance Rating
- Romania's Business Environment
- Table: BMI Business And Operational Risk
- Table: BMI Legal Framework Ratings
- Table: Labour Force Quality
- Table: Annual FDI Inflows Into Central And Eastern Europe And Central Asia
- Table: BMI Trade Ratings
Company Monitor
- Alstom
- Bouygues Romania
- Holcim Romania
- Mivan
- Strabag
- TriGranit
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
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Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=8727...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.