Private investors, a category of smaller but more dynamic players compared to institutional investors, are showing an increasing interest in acquiring office spaces in central areas of major cities, especially in Bucharest. However, in the Romanian capital, a significant challenge hampers transactions: the issue of unreinforced buildings located on prominent thoroughfares such as Victoriei and Magheru. These structural vulnerabilities severely limit the market activity in these central zones.

At the recent Profit.ro Conference on the Romanian Real Estate Market under the Western Crisis Specter, Mihaela Pană, Partner at Private Investment Capital Markets, Cushman & Wakefield Echinox, highlighted the shifts in investor behavior. “Private investors are the market’s lifeblood because they move quickly, analyze rapidly, and make decisions autonomously. This agility simplifies processes considerably,” Pană stated.

Private investors’ portfolios often feature a diversified range of assets rather than focusing on a single product type. According to Pană, the trend has evolved beyond prioritizing returns alone. “Acquisitions now also consider the quality of the product and the tenants. When it comes to preferences, street-level retail is particularly favored by many local investors,” she said. However, this segment remains underdeveloped, offering a limited variety of available products.

To navigate these constraints, private investors are increasingly turning to development projects. A notable shift involves the acquisition of retail spaces within large residential developments. This preference aligns with the growing demand for mixed-use spaces that cater to modern urban lifestyles, combining convenience and functionality.

In conclusion, private investors are a driving force in the real estate market, adapting quickly to challenges and opportunities. Their focus on quality assets and diverse portfolios underlines their strategic approach, even as structural issues in Bucharest’s central areas pose hurdles. The evolving landscape offers significant potential, especially in development projects and retail spaces integrated into residential complexes.

Find out more: https://www.profit.ro/povesti-cu-profit/real-estate-constructii/video-conferinta-profit-real-estate-editia-iv-mihaela-pana-cushman-wakefield-echinox-exista-interes-investitorilor-privati-spatii-retail-stradal-zone-victoriei-magheru-problema-cladirilor-21632319