The GDP in Romania fell by 3.9% last year as a result of the pandemic. However, a 4.3% increase is expected this year, according to official government estimates, while the International Monetary Fund is even more optimistic, expecting a 6% GDP growth rate for Romania this year.

The National Institute of Statistics reported in February 2020 a record low 3.9% unemployment rate in the country, which increased during the pandemic to 5.7% by February 2021. This was followed by a slight decrease to 5.5% during March 2021.

However, property investment volumes in Romania in Q1 were just €73.5m, according to JLL, which is 50% lower than in Q1 2020.

In Q1 this year, offices represented almost 50% of total investment volumes, followed by hotels, with 32% and industrial with the remainder 19%. There was no change in prime yields during Q1. For offices the yield remained at 7%, for shopping centres at 7.25%, after a 25-bps increase in the previous quarter, while for industrial properties the prime yield stayed at 8%.

The vacancy rate for offices in Romania continued to increase in Q1, from approx. 11.3% during the previous quarter, to 13.4%.