Romania, second place in Eastern Europe in terms of real estate transactions

Romania is on the second position in Central and Eastern Europe, after Poland, in terms of value of large real estate transactions concluded in the first half of the year, which totalled 815 million euro, according to real estate consultancy company Cushman Wakefield.

"In Romania, the second quarter marked a return of major transactions on the real estate market, having a total amount of 696 million euro 18 6% more than in the same period of 2007 and almost six times more than in the first quarter of this year when acquisitions of 119 million euro were registered", shows a Cushman Wakefield release.

Thus, in the first six months of the year, the real estate deals closed in Romania were in amount of 815 million euro, being outrun in the region only by Poland, where takeovers of real estate projects totalled 907 million.

For comparison, Hungary achieved only 15 million euros in the second quarter and a total of 135 million euro in the first six months, the Czech Republic registered transactions of 235 million euro and Bulgaria of 746 million euro.

However, company analysts mention that although Poland exceeded Romania, with reference to the first six months, the value of transactions in the Polish market dropped by 77 8% in the second quarter, as compared to the corresponding period of last year.

According to the real estate consultancy company Atisreal, transactions in the housing sector in Romania totalled 912 million euro in the first half of the year, of which 605 million were registered in Bucharest.

At European level, the volume of real estate transactions dropped to 25.6 billion in the second quarter of 2008, the lowest level recorded since 2003.

In Eastern Europe, growth had a slower pace, 6 5% in the second quarter of this year, as compared to same period of 2007, according to Cushman data.

The market entered an early vacation. Transaction volume dropped, less because of a lack of demand or of the supply in the market, but because of the uncertainties in the financial market and of prices.

They continue to affect major transactions and sales of portfolios more than other sectors of the market.

However, the demand is still strong for quality products and there are several buyers who now see opportunities in the market," said in the release Michael Rhydderch, Head of the European cross border capital market group at Cushman Wakefield.

Source: Curierul National