Bucharest City Report Q1 2021
JLL’s latest Bucharest City Report shows strong performance of the industrial and residential in Romania
Our report reliefs the modest evolution of the development activity in the first quarter of this year, but with a strong pipeline for the rest of the 2021. Also, the leasing activity remains strong on the industrial market, while on the office market relocations drives the demand. Property investment market has a slow beginning, but we forecast a recovery in the last 6 months considering the pipeline, especially offices properties.
Q1 2021 property investment volume for Romania is estimated at €73.5 million, a value approximately 50% lower than the one registered in the same period in 2020. This comes on the back of a relatively healthy 2020, when transactions volume reached €892.5 million.
For office market, demand continues to be impacted by the Covid-19 pandemic, however, as the vaccination campaign in Romania intensifies, we expect that office activity will gradually return to normal.
The retail sector faced many challenges during the pandemic, especially because of the restrictions imposed to contain the spread of the COVID-19 virus, and the recovery is rather slow.
But, retail sales volumes in Romania increased in March 2021 by 2.3% compared to the previous month, and by 5.6% when compared to March 2020 (National Institute of Statistics).
For industrial market the perspectives for 2021 are very good. The sector performed very well in 2020 and during the first quarter of 2021, and this trend is most likely to continue throughout the year.
The residential supply in Bucharest proved to be only slightly affected by the pandemic while Q1 experienced strong demand for residential.
Find out more by downloading the report.