Many experts today refer to the Romanian market as the dark horse. The economic growth is driven by internal consumption and wage growth, with relatively low taxes also of certain significance. Moreover, Romania looks after potential investors by establishing favourable conditions for businesses. The current Romanian prosperity means that the country is becoming an increasingly attractive destination for foreign organizations, and the commercial real estate sector benefits from it, too. The BNP Paribas Real Estate advisory, which forms a part of the global structure of the BNP Paribas Group, realises that there is a great potential in the local market. The key areas of business in Romania are office leasing, property management and support in property sale and purchase transactions. The main focus of interest for BNP Paribas Real Estate is the Bucharest market with take-up in the last two years reaching 300 000 sqm, which is comparable with take-up in Lyon, the second largest office market in France. The organization’s experts highlight that demand is driven mainly by businesses active in the IT&C sector. The total volume of office lease transactions set to be completed by BNP Paribas Real Estate in H1 2017 stands at 25 000 sqm. The company’s analysts forecast that this dynamic trend will continue at least through 2017-2018. Unsurprisingly, demand for office space in Bucharest is encouraging developers. The response to the high level of demand for modern office space comes in the shape of new schemes constructed in the Central West and West districts of Romania’s capital. It should be stressed here that Bucharest is not the only magnet attracting investors to Romania. Cities such as Cluj, Iasi and Timisoara lure with prime conditions for business growth. Moreover, experts at BNP Paribas Real Estate highlight the fact that rents are stable, oscillating around 15 – 18 EUR/sqm/mth, and Romania is now entering a market maturity phase. Economists and analysts point out in unison that if you want to achieve a strong position in Europe today, your presence in Romania is a necessary must-have.
Louis-Maxime Juhel Head of Office Agency - Director BNP Paribas Real Estate Romania