BNP Paribas report: Overview of the real estate market in Bucharest, at the end of H1 2009

November 11, 2009 at 7:41 am | Posted in News from Members | Leave a comment
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BNP_ENThe number of finalized residential units in Bucharest increased from 834 in H1 2008 to 1,041 in H1 2009, while in Ilfov County the residential units decreased by 13%, reaching 2,160 units shows a report elaborated by BNP Paribas Real Estate at the end of the first half of 2009.

Along with information on the general evolution of the real estate investments, integrated in the contemporary economic context, the evaluation lead by the real estate company focuses on the five dimensions of the market: office, residential, commercial  industrial and land.

The authors of this report show that the pessimistic economic outlook and the negative general feeling of the real estate market have determined the contraction of the office segment. The office area finalized in H1 2009 was 17% smaller compared to the similar period of 2008, due to the delay with several months of projects proposed for delivery in H1 2009.

The worsening of the business environment for retailers was proved by the obvious decrease of the trade volume in the first semester of 2009 compared with the same period of 2008. The drop fluctuated between -1.5% in January and approximately -18% in June. The rise in supply registered during H1 2009 was a result of the completion of projects initiated before the economic crisis, when the local market was facing a strong imbalance between demand coming from international retailers and the available commercial units.

In H1 2009 the industrial segment was marked by the contraction of the leasing activity and low rhythm of completions. The majority of new modern facilities were medium-sized, with the logistic activities as main destination.

In the land sector, even in the context of diminishing asking prices there are still major discrepancies in price expectations between buyers and sellers. Except the landlords who are experiencing financial difficulties, the other owners are not willing to lower the price below a certain level.

The entire report is available for free download here.

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