Office yield stops at 8.5% a year

The average yield of investments in office projects in Bucharest dropped by 3.5 percentage points last year, to 8.5% a year, in euros, according to a survey conducted by the real estate company CB Richard Ellis (CBRE). The yield of real estate investments is given by the ratio, stated as a percentage, between the annual revenue generated by the space in question, and the amount of funds allocated for the construction and the fitting of the building, or the price for which the building was purchased. The stock of office buildings in Bucharest went up by 35%, currently standing at a total of 825,000 square metres, CBRE adds. For this year, the company”s representatives estimate this stock will grow by another 200,000 square metres, half of which has already been pre-rented. “The quality of office space is still going up on the Romanian real estate market, with about 40% of the total stock comprised of class A space. Office rental last year reached a total of 192,000 square metres, a record high for the last few years,” said Mihai Ghircoias, chief executive of the office department within CBRE. ZF