Romania: from a “real estate El Dorado” to the toughest market for Immoeast

Austria's Immoeast investment fund, owning a real estate portfolio of almost one billion euros on the Romanian market, particularly acquired in the 2005-2008 period, derived revenues worth 55.2m euros in May 2009-January 2010 from renting its properties of Romania, the investor views as the most difficult key-market it operates on. "Romania continues to be the most difficult key-market for Immoeast. The office space surplus of Bucharest will rise further amid the finalisation of new projects in 2010: as a result, rents will still be under pressure and the vacancy rate, already high, will see further increases," reads a financial report by the fund, the biggest owner of offices in Bucharest, with a portfolio of almost 200,000 square metres. Immoeast owns a portfolio valued at 976m euros domestically, including a series of properties, particularly commercial ones, in various stages of completion, which are likely to generate revenues in the following years.