The value of real estate transactions reached 740 million euros at the end of 2006, according to a report of CB Richard Ellis real estate company. The most interesting market segment was that of offices which received investments of 382 million euros, while the volume of transactions in commercial area segment reached about 285 million euros.
The industrial and residential segments have known a slower activity, with investment transactions of about 43 million euros. Interest in the hotel market has grown and will still be at high levels in the following period, as a result of the lack of quality properties in the other market segments. A single transaction was concluded in the hotel field in 2006 for 29.5 million euros.
Due to the increases activity in the other market segments, the proportion of investments in offices has dropped – they represent only 51% of all investments , which is a drop by 30% compared to 2005. About 187,000 sq.m. totaling 15.5% of the total stock of offices. The biggest transactions with office buildings concluded in the second semester of 2006 were the purchase by Immoeast of Victoria Park project for 60 million euros and the sale of the first two buildings of Sema Park to the Austrian fund Europolis.
In 2006 the commercial area market was the second segment as performance in point of transaction volume, with 3 projects of 285 million euros. A single transaction was concluded in 2005 for investments in commercial areas for 3.5 million euros.
The biggest transaction concluded in the Romanian market is the purchase of Sun Plaza project by Sparkassen Immobilien AG for 150 million euros before the completion of works. Other important transactions were the purchase pf City Mall by UKA/APN Group for 103.3 million euros and the purchase by Equest Balkan Properties of Vitantis Retail Park for 31 million euros. In the commercial area market profitability is 7.5-9% according to the project. Investments in other types of properties totaled about 73 million euros.
Investments in hotels grew significantly in 2006. The French hotel chain Accor sold Novotel Hotel to Sparkassen Immobilien AG for 29.5 million euros, Accord remaining the hotel operator. Investments in industrial areas registered only 2 transactions concluded in the first half of 2006 with 19 million euros. The residential market becomes more and more active with many projects in construction or in advanced stage of obtaining licenses with high potential for investors. Rom Canada Group sold the residential project West Park to BSR Europe for 14 million euros, while Charlemagne Capital purchased 50% of residential project Asmita Gardens.