Romania Real Estate Report 2015
BMI View: With growing public confidence in the current parliamentary administration and risinghousehold spending, we believe that Romania's commercial real estate sector is set to experience buoyantgrowth, rendering it an attractive investment opportunity. However, companies should remain vigilant as tothe situation regarding the stagnation in rental rates as a result of high vacancies.
The Romanian economy looks to outperform its CEE peers over the 2015 and 2016 period as improvedgovernment fiscal policy and robust consumer spending drive economic growth further than peripheral EUemerging economies. Due to the favorable conditions witnessed, we have revised our GDP forecast from3.4% to 3.6% for 2015 and 2016, exceeding prior prospects and revealing the growing potential for theRomanian economy. Looking ahead in the forecast period, we expect to witness increasing publicconfidence influencing investor confidence and business sentiment, which dwindled under the Iotaadministration in previous years over corruption allegations and poor EU funding absorption. But with theinauguration of the Iohannis government expect to see fiscal fundamentals change and create a moreappealing investment location in the coming years; which will see further market diversification as thegeographic location, and improved geopolitical standing, of Romania proves to be valuable as a routebetween the East and West. This is a pertinent topic for commercial real estate as, historically; Romanianassets have proved sensitive to periods of political unrest across the region.
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