Market Report, "Romania Real Estate Report Q1 2011", published

Dec. 17, 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.

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Report Table of Contents:

Executive Summary
SWOT Analysis
- Romania Real Estate/Construction 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, 2009-2015 (%)
- Construction Outlook
- Table: Construction And Infrastructure Industry Data
- Macroeconomic Outlook
- Table: Romania - GDP Contribution To Growth, 2007-2015
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Europe Real Estate/Construction Business Environment Rating
- Romania's RECBER
- Project Finance Ratings: Outlook For Central And Eastern Europe
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: 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
- Adama Holding/Adama Romania
- Plaza Centers NV
- Strabag
- TriGranit
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

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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.