The Romanian real estate market is a rapidly changing environment, which is visible both on construction sites and particularly in investors' calculations. Investors are now viewing acquisitions in Romania with margins comparable to those of more mature markets, such as the Czech Republic and Poland. Real estate investors could soon push the 6% threshold in terms of investment yields, after deals were conducted with yields of 9% and even higher at the start of last year. "The Romanian market has certainly witnessed the fastest compression of yields in the region. In 2002, we noted that the domestic real estate market would soon 'take off'. Things have changed even more rapidly than I had anticipated. The mentality of many investors is that Romania lags behind Central European states, but this view changes when they arrive here," states Troy Javaher (photo), Director of Business Development Capital Markets with Jones Land LaSalle (JLL) real estate consultancy. The decline in yields is closely related to market stability, considering that the 12-14% yields registered 3-4 years ago were characteristic of an emerging market, whose development was in full swing. Investment yields revolved around 9% in late 2005 and early 2006, both on the segment of commercial space and office space. During the middle of this year, deals were sealed with yields of around 6.5% and Javaher maintains the 6% threshold may be "tested" in a deal before the year is out.
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