Vacant office space set to rise
EMPTINESS EXPANDS Excess office space will continue to rise this year in Bucharest, following an increase in office projects to be completed in 2010
April 2010 - From the Print Edition
This will lead to low occupancy rates, while rents will remain under pressure, according to the most recent report by the Austrian equity fund Immoeast.
Romania remains the most troubling market for real estate investments this year among the countries where Immoeast is active – including Russia, Poland, the Czech republic, Hungary, Slovakia and Austria.
In Romania, there is a problem with a growing supply and a lessening demand among office projects, while new residential units are also facing a buyer shortfall and construction companies are going bust in record numbers.
The fund ended the first nine months of the fiscal year 2009-2010 with revenues worth 55.2 million Euro in Romania and cashed 36.5 million Euro in Romania in the first semester of the fiscal year.
Immoeast owns 72 properties in Romania, including Iride Business Park in Bucharest (Pipera), Armonia Center Arad, S-Park office building (Piata Presei) in Bucharest and Gold Plaza Mall in Baia Mare.