ANALISYS: Resuming of public & private investments and new development premises

Resumption of construction and civil engineering especially in 2015 creates favorable conditions for the development of local market during the current year. Usually, the investors prefer regions like Bucharest, Timişoara, Cluj-Napoca and Constanţa to start new projects. After the increase recorded in 2014, when was distinguished an appetite for running projects in the above mentioned areas, on short term are expected significant investments especially in civil engineering, and also a slight revival of activity in the infrastructure area. In Romania, the value of real estate transactions increased last year to 1.2 billion euro, from 300 million euro in 2013. According to DTZ, 45% of total purchases represents retail projects, 30% offices, while the industrial sector attracted 15% of transactions. Also, about 10% of the amount was designated to land acquisitions. DTZ estimates that the growth of investment market will continue over a period of several years. Another analysts consider that having lagged behind much of Central and Eastern Europe (CEE) countries, a robust and fast growing on national economy will provide in the next future the principal driver for the country's commercial real estate sector over the next two years. The country already began to surge ahead of much of the European Union as the demand starts to translate into acceleration of economy. This stable backdrop will allow Romania to put itself increasingly on the radar of the international investment community, as the country acquires something of a safe status amid political and economic upheaval to the east and west of the country. In some experts opinion, the key of the recent growth has been Romania's attractive level of prices, which remain considerably lower than those of other major CEE states, such as Poland and the Czech Republic, making the country an increasingly appealing base for international investors, and equally for local ones. It remains to see in what extend these favorable premises will reflect on the quality and volume of construction works.