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Friday | November 27 | 2020

Romania: 85% investors active in the land segment expect to close a deal in 2021

About three quarters of investors active in the land segment have completed land deals in 2020 or expect to close ongoing deals by the end of the year, according to a survey conducted by Colliers International on the land market among more than 90 professionals active in this real estate segment.

About 60% of respondents to Colliers International’s survey in the land segment decided to move ahead with all or some of the deals that were already in progress this year, while 19% even sought diverse perspectives to initiate new transactions in the past months.

In terms of 2020 market activity, 73% of investors interviewed  have closed land deals in 2020 or expect to close one by the year end.

”Land transaction activity seems to be settling into a new normal. 85% of those recently surveyed responded that they expect to close a land transaction in 2021. How much of this is scientific prediction, as opposed to mere hope, remains to be seen”, says Sînziana Oprea, Director Land Agency at Colliers International.

Almost in line with the spring survey, the interest to further acquire land is quite evenly distributed across sectors, with most of respondents placing residential (31%) or retail (25%) land types on their top choices.

In terms of the evolution of land prices, the perception regarding the evolution in 2020 was fairly similar in the spring version and the autumn survey.

Respondents do not see any sharp changes in either direction, rather on a case by case basis in most cases and with the balance tilted rather the downside.

The outlook for 2021 shows a clearer twist towards a decline, with about 60% of respondents having a perception of prices cooling off over the next year, to a small (30% of respondents) or large extent (similarly, 30% of respondents).

With all uncertainty regarding the dynamics of the land market in the current epidemiological context, 62% of investors expect the overall real estate sector’s situation will become satisfactory by the end of 2021.

Land market players are, however,  more optimistic when it comes to their own company, with 29% expecting to get back on track by end-2020, another 24% expecting things to sweeten by mid-2021 and 23% in the second half of next year.

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