PROJECT ANALYSIS: Timorous resume of the national investment activity

According to the opinions of specialized real estate consultancy companies, year 2013 will be, in terms of investments in the construction and real estate domains, a period characterized by thorough analysis from the potential investors of any opportunities existent in Romania. The demographic characteristics of the country and the attractive conditions for societies which activate in the field of outsourcing services remained unchanged. Moreover, the market offers institutional products developed by companies with a regional presence, a small number of ongoing projects, while the level of rents returned to sustainable values. With a reduced competition between investment funds on the Romanian market, analysts believe that now is the perfect time to purchase strategically - on the basis of a careful assessment of products and the efficient structuring of the transaction - the best projects on the real estate market. While a modest recovery of the consumption level contributed to GDP growth in the second quarter of last year, the economy shrank again in the next three months, while the annual data showed an increase of 0.3% in comparison with the previous year. The financial indicators for 2012 were influenced by a number of political events which generated the increase of the funding costs and the obstruction of the investment activity during that period. The end of the year was marked by a relative increase of the confidence in Romania's economic fundamentals, a positive perception that marked the return of interest and the beginning of some important transactions which are in the advanced stage of negotiation. In the present time, the investors’ interest is focused on raw products, while the transactions with by-products or the ones which are part of non-central areas are limited in number. The interest in real estate development has returned in the second half of last year, amid the considerable decrease of the gap between the asking price of the owners and the one offered by developers. This fact is argued in an analysis by the experts of Capital Property Advisors (CPA), a company of real estate consultancy. For further information and a detailed analysis of the current TOP-Fereastra issue click here!