Real estate investors still show interest for acquisitions of new projects in Romania, even in the context of the Covid-19 epidemics, shows a study conducted by Colliers International on the investment market among more than 60 real estate companies representing investment funds, developers, asset managers and banks.
Most real estate market players are seeking to better understand the current situation before making investment decisions (64%). However, almost a quarter of participants to Colliers International’s study on the investment market declare that, should an opportunity with favorable transaction conditions arise, they would invest even considering the uncertainties of the current context.
However, investors expect tighter financing conditions and appreciate that the crisis could have long lasting effects on the real estate market, with complex implications both for future rental income as well as prices, Colliers International’s study in the investment market shows. Two thirds expect a decrease in financing availability, while 59% believe that financing costs will increase. Consequently, it is expected that good quality projects and relationship track record with the bank will matter increasingly more in the credit analysis process.
More than 67% of investors expect that the implications of the current Covid-19 epidemics on the Romanian economy will last longer than a year, shows the Colliers International study on the investment market. However, there is a bit more optimism regarding the real estate market, with 35% counting on a recovery in less than a year, while investors forecasting implications for the real estate market for over a year are fewer (52%) than those expecting effects on the overall economy for a longer timeframe (67%). Investors are even more optimistic when it comes to their own company, with 27% expecting to recover in less than 6 months and 38% in less than a year, which can be seen as a sign of trust in their business’ viability.
