Most valuation reports were in relation to bank loan guarantees (>60%), but the impact of this category in the total turnover was of only 33%, as it also includes many small properties.

Bogdan Sergentu, Head of Valuation Cushman & Wakefield Echinox: “The evolution of yields, rents, sales, vacancy rates, but also the incentives granted to tenants by owners, have a high degree of influence pertaining to real estate values. In 2024, we witnessed a marginal yield adjustment which was offset by rent indexations. Regarding the office segment, even if there was a decrease in vacancy, the tenant incentives remained consistent. Moreover, the significant retail sales' growth has led to an increase in turnover rent revenues in most shopping centers or retail parks”.

Another very important element in real estate, namely ESG policies, is becoming more and more relevant in valuation standards, which have seen the inclusion of new benchmarks dealing with the energy efficiency of buildings in the last few years, thus impacting the property values depending on the energy efficiency class.

Bogdan Sergentu, Head of Valuation Cushman & Wakefield Echinox: “The same drivers will likely influence property values in 2025. However, this year will also be shaped by political developments, including the spring presidential elections and the ongoing war in Ukraine. Government measures to reduce deficits, potential austerity and a possible downgrade of the country's credit rating could negatively impact the real estate values.”

The retail segment proved to be the most resilient in terms of asset value growth, driven by increased sales among a number of retailers. We noticed decreases in vacancy rates, but also a rapid replacement capacity (without long vacancies) in retail stores which did not perform very well. Moreover, retailers continued to expand and the shopping center footfalls followed an upward trend.

Offices had another relatively problematic year in the sense that they only partially managed to reduce the overall vacancy rates. The high level of incentives offered to tenants by office owners was only partially offset by the inflation-based rent indexations. A slowdown in new office developments may help to rebalance this segment in the future.

Offering a national coverage, the Cushman & Wakefield Echinox valuation department has a strong and stable team with an average experience of over 20 years in the field.