JLL: Austrian real estate investors will take a break

The real estate investments market, which is currently dominated by Austrian investors, is expected to greatly diversify within the next few years, in terms of the investors’ country of origin, according to representatives of the American real estate consulting company Jones Lang LaSalle (JLL). “The investments market will diversify and become much more liquid. Bucharest has the highest growth rate in the region and continues to attract a significant number of investors. The entry onto the market of German-based Allianz’s real estate division (DEGI) is just one example of open-end funds that want to invest on the Romanian market,” said Charles Krick, Associate Director at Jones Lang LaSalle. According to the company’s half-year report, since 2003 until the first half of 2007, Austrian investors dominated the Romanian real estate market, accounting for 73% of overall investments. The leading Austrian investment funds on the market include Immoeast, the most active player on the Romanian market, as well as Europolis and CA Immo. Ranked below them, in terms of investors’ country of origin, are companies from the UK (13%), Ireland (10%), and Australia (3%). Most transactions were forward sales, with the trend expected to continue, because there aren’t very many completed projects on the market. I believe Austrian investors will take a break to manage their investments, so as to maximise the value of their portfolios,” added the JLL representative.