Romania Research and Forecast Report H1 2019

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The Romanian real estate market recorded good results in the first half of 2019, with activity on office and investment segments getting more dynamic than that of some CEE peers.

 

Economy
With the full year GDP expansion figure looking likely to top 4%, 2019 looks set to become the 9th consecutive year of continuous growth for Romania, equaling the previous record streak, seen between 2000 and 2008. There are signs that the economy has already peaked for this cycle and that it is getting ready to shift into a lower cruising speed.

Office
The first half of 2019 saw deliveries of some 185,000 sqm in Bucharest, taking the city’s modern office stock to 2.6 million sqm. This is an increase of over 10% compared to last year’s end-June stock, making Bucharest the most dynamic among CEE capitals. Total demand for modern office buildings stood at 188,000 sqm in Bucharest in the January-June period, the best first semester in the post-crisis period.

Industrial
Around 300,000 sqm of new modern storage spaces came online in the first half of 2019. Bucharest accounted for over 40% of the total deliveries. Outside the Capital, investments continue to be mostly geared towards cities in the region of Transylvania, which accounted for over one third of new I&L spaces. Market take-up more than doubled in the first semester, to a bit over 240,000 sqm, versus around 110,000 sqm in H1 2018.

Investment
While inflows into Poland are still lagging (-20%) versus a strong H1 2018, Romanian, purchase numbers all picked up in Q2 after a weak Q1. The first semester closed with a total real estate investment volume of around EUR 345mn in Romania. Office continues to dominate the CEE region in H1 2019, up 43% year-on-year. Romania kept up with the trend, with office assets accounting for c.62% of the total investment volumes.

Retail
The first half of 2019 saw limited deliveries, but we expect a busier second semester. The new supply this year could reach 216,000 sqm, a 50% increase of 2018 and the highest figure since 2011. Non-food retail sales went up by c.10% in the first 6 months of 2019, a better than the full year result for 2018.

Land
The bulk of the demand is concentrated for plots inside the cities, ideally with a zoning permit in place. Currently, there are several significant land deals stuck in various stages of negotiation and duediligence, so the first half of the year was not particularly strong in terms of market turnover.


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Romania Research and Forecast Report H1 2019

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Laurentiu Duica

Director | Partner | Romania

Bucharest

Over 12 years’ worth of experience in the industrial market, and has worked both in the operational and sales side. Prior to joining Colliers International, he was head of leasing and development at P3, a developer and manager of European logistics properties. Laurentiu has also worked for seven years at FM Logistics, one of the largest logistics providers in Europe and Romania, advancing to the position of commercial manager.

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Gelu Marghioala

Senior Associate | Romania

Bucharest

  • 12+ years of experience in Logistics &Transportation, including insurance services and freight management

  • Focus on sales activities, business development and increasing the portfolio of key accounts 

  • Prior experience: FM Logistic – Logistics and transportation operator, and Asko Assekuranz - Insurance brokerage company in the field of logistics and transportation

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Madalin Stanescu

Senior Project Manager | Romania

Bucharest

Madalin has joined Colliers International in 2016 as a Project Manager. Currently, he is  Senior Project Manager responsible for Investment and Non-Core Portfolio Disposal Project.

Previously, Madalin was involved in managing different projects in Sales and Real Estate Divisions for more than 9  years within ABN AMRO Bank N.V., RBS (Royal Bank of Scotland) Romania Bank and BCR SA (Romanian Commercial Bank SA).

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Sinziana Oprea

Director

Bucharest

Sinziana started her activity in Colliers in 2006 within the administrative team and 1 year later was promoted Assistant for the Land Department.

 

As a result of her remarkable progress and her will to build a brokerage career, in 2009 Sinziana took another step up in her career and became Associate within the Land Department. As one of the main agents of the team, she focused on client needs analysis, ensuring effective communication and building up long term relationships. She specialized in retail parks developments and played a key role in assisting major retailers to find strategic locations for their future expansion plans.

 

Upon her promotion to Senior Associate position in 2012, Sinziana gained a broader portfolio of clients and switched focus to office and residential sectors, two markets that have started to become particularly active. Due to her deep

expertise in the land market and to her client focus orientation, Sinziana fulfills with success the highest expectations by making perfect matches between the vendors’ and buyers’ interests. She is also in charge with market prospecting and budgeting, as well as with drawing up financial analysis for various project developments.

Starting with mid-2014, Sinziana became Associate Director within Colliers Land Agency. Under the new role, she also provides assistance and coordination to the other team members and is responsible for drawing up the Land Agency

overall strategy.

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Sebastian Dragomir

Partner | Head of Office Advisory | Romania

Bucharest

Achieved over 14  years of experience in Real Estate, including management of Landlord Rep Department in CBRE, Head of EHL Romania Office & Industrial Department, and Senior Leasing Manager and Marketing Coordinator within IMMOFINANZ Romania, dealing both with Industrial and Office portfolio in Romania and Bulgaria. 

Currently, managing the activity of Office Advisory team in Colliers. 

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George Didoiu

Director | Tenant Services

Bucharest

Achieved over 11 years of experience in real estate, managing 10 LIDL properties and the development of the network as a Regional Expansion Director(previously) and the office leasing activity in Colliers (currently)

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Lucian Opris

Associate Director

Bucharest

Lucian joined Colliers International Romania in August 2015.

Previously he held the Leasing and Asset Manager position with Bluehouse Capital real estate investment fund, coordinating the leasing and property management of several office buildings and retail projects.

He also activated as a land broker for Colliers in 2008 and 2009.

business and educational background

 

Working on the landlord side Lucian has experienced full building cycles, starting with development, pre-leases, leases, renegotiations, extensions, expansion and property management, having insight on landlord’s reasoning, strengths and limitations, as well as on the tenant’s priorities and necessities.

As an Asset Manager and Property Manager for 4 different office buildings Lucian can assess and advise on other critical components of lease agreements like the building operating cost, service charges and landlord practices with regards to capex and expenditures. 

His past exposure to multiple tenants of different real estate products allows for easier understanding of the client, leading to a better approach when selecting an office building.

 Lucian is skilled in finding proper tailored solutions for office tenants, negotiating lease agreements and liaising with consultants, architects, project management and facility management teams for creating the best tenant/client relocation experience.

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Daniela Popescu

Associate Director | Romania

Bucharest

Daniela joined Colliers International in 2005 in the Residential Department and moved to the Consulting Division early in 2006. 

She proved to have excellent research and analytical skills and she specialized in the residential segment. 

After 6 years of involvement in consultancy, in 2012, she has been appointed as Head of Research. At the moment she coordinates the research activities within Colliers International Romania being involved in various analyses, reports and forecasts conducted on the Romanian real estate market.

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Laurentiu Lazar

Managing Partner & Head of Investment | Romania

Bucharest

Laurentiu, Managing Partner at Colliers International Romania, has over 12 years of experience in real estate services including valuation, advisory and investment. He joined Colliers in 2007 as a real estate valuer and in 2009 he was promoted to Head of Valuation and Advisory Services, with the responsibility to expand the valuation team in Romania. In 2015, he became Head of Investment, developing the Capital Markets services and later appointed as Senior Partner within Colliers International Romania in 2016, managing over 20 experts. As of march 2018, Laurentiu was promoted Managing Partner.

Before joining Colliers, Laurentiu worked for 10 years at Vodafone Romania/Connex, holding different management positions within Marketing and Customer Operations Divisions. Between 2014 and 2017 he has been Vice-President of ANEVAR (Romanian Association of Valuers).

In parallel, I was involved raising funds for various projects, such as Teach for Romania, The Romanian Foundation for Neurology and Epilepsy and “Prietenia” Association.

Quote: „When given the choice between being right or being kind, choose kind.” – Wayne W. Dyer

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Robert Miklo

Director | Romania

Bucharest

Robert was born and raised in Romania, attended Emanuel University of Oradea and joined Colliers International in 2006. Since entering the real estate services industry, he has focused his activities on consulting, research and the sale of investment properties. Robert deals with private and institutional investors and remains up-to-date on product and global and local market context.

Since joining Colliers International, Robert has served as:
 
- 2006-2008: Consulting - carried out approx. thirty feasibility and market studies for investors, developers and financing institutions
- 2008: Investment Analyst
- 2009: Coordinator of Research Division
- 2010 - Investment Sales
 
Robert is also a member and moderator at the School of Leadership, an educational initiative of Colliers International Romania and a guest lecturer at the Griffiths School of Management.
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