BNP Real Estate Romania announces the Bucharest Market Overview 2008

March 26, 2009 at 6:18 pm | Posted in Member Projects, News from Members | Leave a comment
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The Market Report issued by BNP Paribas Real Estate Romania for year end 2008 offers realistic, accurate and updated information, analyzing the office, residential, retail, industrial, land and investment segments. The Romania Green Building Council also provided support in developing the Sustainability Section of the report.

The office market is experiencing the negative effects of the economic downturn manifested in declining rents and leasing activity. Although this segment performed remarkably well during the first semester of 2008, market fundamentals have been softening at a moderate pace especially since the last quarter of the year. As the cost building policies are affecting the demand characteristics, on the long term the proposed supply should adapt to an emerging new trend, the development of green buildings.

In 2008 the increasing trend of supply initiated in last two years continued on the residential segment. In the second half of the year, the first challenges appeared for developers, due to the worsening of the local and international economic situation. As a result, many projects experienced slow construction works, while others have been postponed for 2009 or even later.

The retail market has experienced a remarkable evolution in 2008, characterized by significant increasing of supply and diversification of retail type of properties.

The industrial segment continued to perform remarkably well during H1 2008 as the leasing activity corroborated with the development process contributed to a further market expansion. However, starting with H2 2008 the worsening of the international and local economic context led to the slight decrease of demand, while the launching of new projects was virtually non-existent.

During 2008 the land segment has recorded a fundamental change, from a vendor to customer market, this trend becoming more visible in the second half of the year. Despite the evident downtrend in prices, the number of transactions has severely decreased while significant transactions have been virtually non-existent.

Click here to download the entire report.

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