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Residential investments are the most profitable

30.03.2007, 19:46 16

The return of investments in residential projects has reached around 10%, becoming the highest on the market. The increase in returns comes after a period in which other segments, the industrial, commercial and office segments had been more attractive, according to information from the consulting and brokerage company Coldwell Banker Affiliates of Romania. However, returns on the local market are falling due to a maturing market, with the only segment on the market witnessing an increase being residential projects, as there is a shortage of homes. In spite of the slight decline in yields, profits derived by investors on the Romanian market were among the biggest in the region in the past few years. The local market continues to offer yields above those in the EU or in North America. In the Czech Republic, Poland and Slovakia, annual yields for real estate investments for office and commercial space fell to 7.25%-7.5% last year, according to Coldwell Banker.

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