London 10/24/2011 12:58 AM GMT (TransWorldNews)
Romania has finally exited its deep, two-year-long recession. Exports have surged to new all time highs, as demand from Asia and Europe (especially Germany) has surged. This lift has seen the unemployment rate drop from 8.4% in March 2010, to 5.9% in March 2011.
The commercial real estate market in Romania is expected to recover reasonably well over the next few years, as the rest of the economy regains its growth.
Some of the key opportunities currently in the real estate market are:
- Increased industrial production will lead to a demand for more industrial property to be developed. We are expecting rents for industrial property in Bucharest to rise by between 8 and 10% during 2012.
- EU funding for much-needed infrastructure projects will become available over the next few years.
- New construction projects are beginning to emerge, and activity in the building industry will pick up through the rest of the forecast period.
- In July 2011, the Fitch agency raised Romania's credit rating, bringing it back into the range recommended for investments.
Some key risks to the current real estate market are:
- The country remains financially fragile, and the supply of credit may prove a limiting factor to expansion, both economy overall, and more particularly in the real estate sector.
- Any rapid expansion will be constrained by the shortage of skilled construction industry labour.
No comments:
Post a Comment