January 16 (SeeNews) – In 2022, investments in commercial real estate assets in Romania reached at least 1.2 billion euro ($1.3 billion), marking the highest market turnover since 2007, U.S.-based professional services and investment management company Colliers said, citing preliminary data.
The result also marks Romania’s second-best result ever since the fall of communism at end-1989 and solidifies the country’s long-term growth potential, Colliers said in its Highlights 2022 CEE-6 Real Estate Market report published last week.
Surging costs of construction materials have put pressure on real estate projects that were under construction. Projects with no significant pre-leases froze, as developers struggled to pass costs onto new tenants, the company noted.
Despite the rise of remote work, the market supply of office spaces remained scarce on a per capita basis. New business service centres, such as those from car maker Ford and U.S. technology group Booking, have entered the Romanian market and corporations are looking to expand beyond Bucharest, solidifying regional markets.
An increase in large production facilities is also on the horizon for Romania, with major investments and relocations underway. Finnish manufacturer Nokian Tyres is relocating from Russia and investing 650 million euro in a factory in the northwestern city of Oradea, while Romania’s Prime Batteries Technology alongside EU-backed sustainable energy investor EIT InnoEnergy is investing 1 billion euro in a factory near Bucharest.
The Colliers report also emphasised Romania’s acceleration of railway and highway infrastructure projects, with the latter projected to increase by 50% by 2027.
Ford Romania SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies