"Although out of the total capital attracted for real estate investment in the European zone Romania only gets less than 0.5%, we estimate in the following years a gradual increase of the investors’ interest in our country due to the attractive yields to be obtained in a relatively low risk", has declared Marius Grigorică, senior business analyst within DTZ Echinox.
He showed that a large part of the available capitals aim for real estate investments in secondary markets as a result of yields’ reduction on the mature markets in Western Europe.
"This could be a favourable context for Romania, which has big chances to attract the attention of the big investors due to the market’s dimensions, but also to the recent improvement of macro-economic fundamentals", Grigorică added.
The capital for real estate investment exceeds 340 billion dollars worldwide, with 6% growth estimated level from 6 month compared to the estimated level from six months ago.
The Asia Pacific region registered the biggest regional capital increase (11%), with more than 90 billion dollars available to be invested in this region. But the Americas stay the most important investment destination, with approx. 130 billion dollars for 2014.
The research is based on a study of data provided by approx. 3,000 individual funds, conducted by DTZ.
A high percent (55%) of the total capital aims the investments in a sole country, with 2% growth compared to six months ago. The United States maintains its dominant position attracting 44% of the total capital oriented towards a single country. China and Great Britain are the next countries of interest, with 9% share each, keeping the trend registered six years ago. In Asia Pacific, Japan continues to attract a high level of capital (6%), as funds are still tempted by the recovery trend and by the improve liquidity on this market.
In Europe, almost 60% of the capital is oriented towards secondary opportunities, less than a third aiming the main ones. On the background of many investors making efforts to secure the main opportunities on the market, DTZ anticipates a growth of the activity of the funds aiming for secondary opportunities through investments in several markets and secondary future locations.
Despite significant new attracted capital growth, the study reveals few changes in its main sources and destinations.
The intermediate administrators of funds continue to rule, with 64% of the available capital, the listed companies and the institutional investors having each 15%. The investment funds are still focused on portfolios diversification on different type of properties (77% of the available capital).
From the capital difference of 23%, focused on a single type of assets, the increasing in interest for the retail sector can be observed, with almost 30% of the here above mentioned percent, followed by the residential sector where a quarter of the funds are oriented. (source: economica.net)