BMI View: Robust economic growth in Romania is fuelling pent-up demand for commercial real estate,driving rental trends upward in the retail and industrial sub-markets. There is room for growth in the officesub-sector, though current rates are mediated by introduction of fresh stock. Positive market fundamentalswill see rental rates accelerate by 2018. However, concerns over long-term economic sustainability mayweigh on market trends.
Romania is on track to deliver another stellar economic performance in 2017, fuelled by robust privateconsumption and a burgeoning tech sector. Headline growth is forecast to accelerate to 5.4% in 2017, upfrom 4.8% in 2016, as macroeconomic conditions continue to improve. The economic backdrop has drivenpositive business sentiment and seen a surge in international investment into the commercial propertymarket. Occupier demand is soaring and rental costs are under upward pressure across the board. There aregreat opportunities for prospective investors in both prime markets and selected subprimelocations. However, concerns over the economy overheating may dampen long-term asset performance.