The dynamic nature of Romanian real estate and the promise of high yields is attracting the attention of a number of real estate investment funds that are willing to invest billions of euros, says Bogdan Georgescu, managing partner at the local office of Colliers International.
"Two-to-three years ago, we would receive bids on a two-to-three month basis from investment funds interested in the Romanian market. Now, the number of funds interested in Romania has risen and we receive new bids daily," adds Georgescu.
He says that the high yields and the still unsaturated demand for high-quality projects is making the domestic market much more attractive than other markets in the region.
"I believe there are at least one hundred funds interested in the Romanian market, but at present there are not so many projects to be bought," he explained.
Despite this, real estate investment funds have been involved in the most important transactions to take place on the domestic market in recent years.
Since the beginning of this year alone, Austrain fund Immofinanz has acquired three office buildings in Bucharest for which it paid around 70 million euros.
Colliers took part in all these deals in the role of consultant, as can be seen in the company''s financial results.
The local office of Colliers International reported turnover of 11 million RON (over 3 million euros) for the first nine months of this year.
This value, explains Georgescu, is comparable to the level of turnover seen for the whole of last year and is set to see strong growth until the end of the year. "In this business, the final few months of the year contribute a disproportionate amount to overall activity. December, for example, adds some 35-40% to annual turnover for the Colliers'' offices in Western Europe."
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