Bucharest City Report Q2 2022

After a strong GDP growth of 5.9% in 2021, economic growth for 2022 is expected to reach 3.5%, according to the latest official prognosis, in July. However, this growth comes at a time when inflation is high, reaching up to 15.1% in June. For the end of the year, inflation is expected to be 12.9%.

The property investment volume for Romania in Q2 2022 is estimated at approx. €257.4 million , a value almost 4 times higher than the one registered in Q1 2022, and 13% over Q2 2021.

We expect investment volumes in 2022 to reach approximately €1 bln., although accurate predictions continue to be challenging to make in this period due to market uncertainties.

Overall, H1 2022 marked a slight 10% increase in gross demand on the office market compared to H1 2021, to 134,600 m². Moreover, net take-up increased to 82,300 m² during the period, 70% over H1 2021.

Retail sales were boosted in Q2 after the state of alert and all pandemic restrictions were lifted on March 9th. Even though footfall in the retail sector is still below pre-pandemic levels, monthly turnovers for tenants has reached or, in some cases, even surpassed pre

The Industrial market in Romania continued to perform very well during Q2 2022, gross demand reaching 188,400 m², 34% below the previous quarter, but 40% above Q2 2021. Net take-up accounted for approximately 77% of total take-up in Q2 or approx. 144,300 m², 40% below the previous quarter, but 22% above Q2 2022.

On the residential market, the second quarter of the year marked a 16% increase as compared to Q2 2021 and aspectacular increase as compared to Q2 2020, with a double volume of registered transactions. The results for H1 2022 are good, albeit the first signs of slowdown are felt.