In 2019, real estate activity should continue at robust levels for all major segments.
Coming after the best decade in Romania’s history in terms of economic convergence relative to developed countries, growth is set to continue cooling down further in 2019, with increased risks (both internal and external – domestic political noise, fiscal uncertainties, slowdown in Eurozone/Chinese economies, global trade risks etc.) set to dampen overly positive expectations.
But there is still room for the economy to grow nicely and this is our base case. As long as companies continue to expand, the tight labour market will continue to fuel wage hikes and, consequently, private consumption. Real estate activity should continue at robust levels for all major segments, albeit inferior compared to 2017-2018 levels, which marked post-crisis (and in some instances, all-time) highs.
