RELIABLE, ACCURATE, SWISS

R E A L E S T A T EI M M O B I L I E N

I M O B I L I A R E

A1

BUCHAREST OFFICE

INVESTMENT. CONSULTING. DEVELOPMENT.

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

With the expected Romanian access ion to the European Union in 2007, thelocal real estate market wi l l suf fer some transformations. We bel ieve that , tosome extent , the Romanian market wi l l act as the other Central Europeancountr ies' mar kets (Hungar y, Czech Republ ic or Poland), but with a cer taint ime delay (3 to 5 year s) . Due to the act ive evolut ion of A1 on the Hungar ianreal estate market s ince 2003, the neighbor ing countr y's market seemed l ike agood choice for a comparat ive study in order to have a gl impse at the futuretrend of the Romanian real estate market after 2007. More than that , we mayassume this compar ison as an interest ing analys is tool as the two capita l c it ies ,Bucharest and Budapest , have almost the same size in terms of inhabitants .

Odata cu aderarea Romaniei la Uniunea Europeana la 1 ianuar ie 2007 piataimobi l iara locala va sufer i unele transformar i . Consideram ca, in pr incipiu, piataromaneasca se va compor ta s imi lar cu pietele tar i lor centra l europene(Ungar ia , Cehia sau Polonia) , dar avand o oarecare intarz iere (de 3-5 ani) . Devreme ce A1 este act iva pe piata imobi l iara din Ungar ia incepand cu 2003, amales aceasta piata pentru real izarea unui studiu comparat iv pentru a vedeatrendul pietei romanest i dupa 2007. Mai mult decat atat , putem consideraaceasta comparat ie drept un instr ument interesant de anal iza intr ucat celedoua capita le , Bucurest i s i Budapesta, au un numar s imi lar de locuitor i .

THE REAL ESTATEMARKET OVERVIEW

PIATA IMOBILIARA

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

THE ECONOMIC BRIEF

SITUATIA ECONOMICAIn Romania , spre deosebire de Ungar ia , mediul fiscal are avantajul introducer i i ,incepand cu 1 ianuar ie 2005, a taxei unice (16%) s i a unui TVA mai mic , de doar19%. Pe de alta par te , mult iplele taxe adit ionale , la care se adauga cele maimar i contr ibut i i socia le din Europa (47,75%) stau in calea maximizar i i cast igu-r i lor rezultate din noi le reglementar i fiscale . Ungar ia a benefic iat de un mediude afacer i atract iv pentru invest itor i atat inainte cat s i in per ioada imediaturmatoare aderar i i insa in momentul de fata se confrunta cu un defic it bugetarfoar te mare .Alt i factor i ce au determinat o crestere moderata a economiei in 2005 s i pr imajumatate a anului 2006, in comparat ie cu predict i i le anter ioare , au fost schim-bar i le numeroase la care a fost supus Codul F iscal . Oricum, avand in vedere caultimele modificar i vor intra in vigoare la 1 ianuar ie 2007, se pare ca va creste gra-dul de predictibil itate a activitatilor comerciale iar mediul fiscal va fi mai stabil .O regula noua este taxa de 3% pe pretul de vanzare-cumparare in cazul tran-zact i i lor imobi l iare . Totusi , taxa este putin peste 2% daca pretul tranzact ie idepaseste 1 mi l ion de Euro; de notat este s i faptul ca exista c lauze favorabi leadit ionale apl icabi le celor ce det in propr ietatea de cel put in 3 ani .Pentru pr ima data din anul 2000, autor itat i le au anuntat ca factorul pr incipalcare a stat la baza crester i i PIB in economia romaneasca a fost expansiuneaindustr ia la , ceea ce se traduce pr intr-un numar mai mare de expor tur i , s i nucresterea cerer i i sat is facuta in specia l din impor tur i .

In Romania , unl ike Hungar y, the fiscal environment has been benefit ing fromthe introduct ion, s ince the 1st of Januar y 2005, of the f lat taxat ion (16%) anda lower VAT of only 19%. On the other hand, the mult iple addit ional taxat ionand the highest socia l secur ity contr ibut ions in Europe (47.75%) stand in theway of maximizing the profits of the New Fiscal Law. Hungar y has benefitedfrom the " investor-fr iendly" environment both before and immediately after theaccess ion, but now suffer s from the huge budgetar y defic it .One other factor of moderate economic growth in 2005 and the fir st hal f of2006, compared to previous predict ions, was the numerous changes suffered bythe Fiscal Code . However, with the latest changes scheduled to enter into forcefrom Januar y 1st 2007, i t appear s that the predictabi l i ty of the commercia lact iv ity wi l l increase and the fiscal environment wi l l be more stable .One new st ipulat ion is the tax of 3% on transact ion pr ice for real estate deals .Nonetheless , the tax is just above 2% i f the transact ion is higher than €1 mil-l ion and it has helpful addit ional c lauses for the sel ler s that own the proper tyfor more than 3 year s .For the fir st t ime s ince 2000, the publ ic inst i tut ions have announced that theGDP growth of the Romanian economy is based on the industr ia l expansion,which means more expor ts , and not on the increasing demands based mainlyon impor ts .

Economic indicatorsIndicatori economici

Due to their s imi lar communist past , several resemblances existed between theresidentia l mar kets of Romania and Hungar y. Among them we can notice theshor tage of apar tments and the almost inexistence of the modern-sty le v i l las ,as wel l as the proper ty-rat io, more than 95% for the Romanian dwel l ings areowner-occupied and 93% in Hungar y as opposed to the average of 40% in theWestern Europe .Since 1989, however, the residentia l mar ket has fol lowed a di f ferent trend inRomania compar ing to Hungar y. Up unti l this year we noticed vir tual ly nodel iver y of apar tments dest ined to the middle-class in Bucharest . Most of thedeveloper s prefer red to focus on supply ing the market with smal l v i l la com-pounds or apar tment projects (up to 100 units) for high income buyer s , suchas the new wealthy-man class or ex-pats as wel l as for investor s . Maximizingthe profits from smal l investment, the developer s have achieved their objec-t ives , but the overal l supply has increased with only a smal l percentage .Despite the decrease of the overal l population, Romania is exper iencing a shor t-age of residential accommodation. Thus, in average , ever y inhabitant has only55% of the habitable area of a Hungar ian inhabitant. The discrepancies are evenhigher when compared to Western European countr ies such as Germany (34%);however the other indicator s for the standard of l iving are in a similar ~33%ratio in Romania compar ing to Western European countr ies.Recently, an impor tant number of projects dedicated to the middle-class havebeen announced on the market. Some of them are already in the constructionphase and wil l be delivered in 2007-2008. Based on the income figures providedby the National Statist ics Institute (about 5% of employees are earning morethan €700 per month) and on the financing oppor tunit ies offered by the banks,we can est imate that cur rent ly around 60,000 famil ies l iv ing in Bucharest (witha cumulat ive income of ~€1,500 per month) have the financia l power and theneed of a dwel l ing owner ship.

Dator ita trecutului comunist comun, exista cateva asemanar i intre pietelespat i i lor rezidentia le a le Romaniei s i Ungar iei . Pr intre ele putem amint i l ipsaapar tamentelor s i aproape inexistenta vi le lor moderne , ca s i gradul de detinerein propr ietate a locuintelor. Peste 95% din locuintele din Romania s i 93% dincele din Ungar ia sunt locuite de propr ietar i i acestora, spre deosebire de VestulEuropei unde media este de 40% .Si totusi , incepand cu 1989 piata spat i i lor rezidentia le din Romania a urmat un trend di fer it de cel din Ungar ia . Pana anul acesta nu am obser vat pract ic nic io l ivrare de apar tamente pentru clasa de mi j loc din Bucurest i . Marea major itatea dezvoltator i lor a preferat sa se concentreze pe real izarea unor mici ansamblur ide vi le sau proiecte de blocur i (pana la 100 unitati) pentru cumparator i i cu venitur i mar i cum sunt cei din noua clasa a oamenilor bogati sau expati sau pentruinvestitor i . Maximizandu-si profitur i le unei investit i i mici , dezvoltator i i s i-au atinsobiectivele; ofer ta de pe piata, insa, a crescut doar cu un mic procent.In c iuda scader i i numarului populat ie i , Romania se confrunta cu l ipsa spat i i lorde locuit . Astfel , in medie , fiecare locuitor are doar 55% din suprafata locuibi-la a unui locuitor din Ungar ia . Discrepantele sunt chiar mai mar i in comparat iecu tar i le din Europa de Vest precum Germania (34%); s i totusi , cei la l t i indica-tor i pentru standardul de viata sunt intr-o cota asemanatoare de ~33% inRomania fata de tar i le vest europene .Un numar impor tant de proiecte adresate clasei de mi j loc au fost anuntaterecent pe piata . Unele dintre ele sunt deja in faza de construct ie s i vor fi l ivratein 2007-2008. Bazandu-ne pe datele despre venit de la Inst i tutul National deStat ist ica (aproximativ 5% dintre angajat i cast iga peste 700 de Euro pe luna) s ipe opor tunitat i le de finantare ofer ite de banci , putem est ima ca in prezent injur de 60.000 de fami l i i d in Bucurest i (cu un venit g lobal de ~1.500 de Euro peluna) au puterea financiara s i nevoia de a achiz it iona o locuinta noua.

THE RESIDENTIALMARKET OVERVIEW

PIATA SPATIILORREZIDENTIALE

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

Dwelling - in shortLocuinte - pe scurt

THE RESIDENTIALMARKET OVERVIEW

PIATA SPATIILORREZIDENTIALE

Presupunem deci ca cererea este formata din ~60.000 de apar tamente saucase noi in ansamblur i moderne , avand in jur de 65 mp (apar tament de 2camere) la un pret mediu de vanzare de 1.000 de Euro per mp + TVA. Acelefamil i i sunt a lcatuite din angajat i t iner i , cu var sta cupr insa intre 25 s i 40 de ani ,cu studi i super ioare , care locuiesc fie in apar tamente inchir iate , fie det inapar tamente in blocur i construite de regimul comunist s i care muncesc in com-pani i mult inat ionale (cel mai adesea in sectorul financiar) . Daca se considera catoate proiectele anuntate vor fi terminate la t imp, pana in 2011, atunci 20.000de apar tamente vor fi l ivrate in Bucurest i - deci cererea inca va depasi cu multofer ta . Pe piata din Budapesta au fost l ivrate peste 70.000 de apar tamente noiincepand cu 2002, cele mai multe dintre ele fi ind pentru clasa medie .Stat ist ic i le ofic ia le au est imat ca peste 10.000 apar tamente sunt deja constru-ite s i pe piata , dar nu sunt inca vandute . O situatie s imilara este prezenta inafara capitalei Ungar iei unde alte 30.000 de locuinte sunt neocupate in prezent.Major itatea apar tamentelor anuntate pe piata bucuresteana pentru clasa medieau pretur i cupr inse intre 800 s i 1 .200 de Euro per mp + TVA. Cu toate aces-tea, cumparatorul plateste acelas i pret pentru suprafetele comune (o par te dincasa scar i i s i intrarea in bloc) , terase s i a lte spat i i care nu sunt c las i ficate dreptlocuibi le , folosind in jur de 60-75% din suprafata construita . Pretur i le inca sunt

intr-un trenda s c e n d e n t ,datorita pre-siunii venitedin crestereap r e t u r i l o ra ta t pentr um a t e r i a l e l ede construc-tii cat si pen-t r u lotur i lebune de te-ren. In Buda-pesta pretu-r i le pentr uapar tamentecomparab i lesunt in t re900 si 1.400de Euro permp + TVA, inconditii simi-lare celorp r e z e n t a t epentru locu-in te le dinc a p i t a l aRomaniei .

So we suppose that the demand is formed by ~60,000 new apar tments orhouses in modern compounds, having around 65 sq m (2 room apar tment) atan average sel l ing pr ice of €1,000 per sq m + VAT. Those fami l ies are formedby young employees, aged between 25 and 40 year s , univer s ity graduates, whol ive in rented apar tments or who own apar tments bui l t dur ing the communistregime and working in mult inat ional companies (usual ly in the financia l sector) .Consider ing that a l l the announced projects are accompl ished in t ime , unt i l2011, not more than 20,000 apar tments wi l l be del ivered in Bucharest , so thedemand wi l l st i l l largely exceed the offer. The Budapest market exper iencedthe del iver y of more than 70,000 new apar tments s ince 2002, most of them forthe middle-class . I t is est imated by the offic ia l stat ist ics , that more than 10,000apar tments are already bui l t on the market , but not sold yet . A s imi lar s i tuat ionis presented outs ide the Hungar ian capita l where other 30,000 dwel l ings arefree for the moment.Most of the announced apar tments on the Bucharest market for the middle-class have the asking pr ice between €800 and 1,200 per sq m + VAT. Howeverthe buyer pays the same pr ice for the common areas (par t of the blockentrance and staircases) , ter races and other space that is not c lass i fied as habi-table , in fact us ing roughly around 60-75% of the bought surface . The pr ices arest i l l on a growing trend, due to the pressure from the increasing pr ices forboth the construct ion mater ia ls and good plots of land. In Budapest pr ices forcomparable apar tments are between €900 and €1,400 per sq m + VAT, in thesimi lar condit ions presented for the dwel l ing in the Romanian capita l .

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

Number of apartments (red line graphic) and price range (white blocks graphic) for middle-class residential projectsscheduled to be delivered in 2007-2008

Numarul de apartamente (graficul cu linia rosie) si nivelul preturilor (graficul cu blocuri albe) pentru proiectelerezidentiale destinate clasei de mijloc ce vor fi livrate in 2007-2008

The total office area in Bucharest has reached only 900,000 sq m, compar ingto the Hungar ian capita l 's 1,650,000 sq m. The di f ference is even bigger i f wetake into account that Budapest has 200,000 inhabitants less than theRomanian capita l . In case of A-class office space , a s imi lar s i tuat ion can beencountered. While Bucharest market offer s approximately 250,000 sq m ofoffice space , in Budapest an area of a lmost double s ize could be qual i fied asA-class office space .The rent for both pr ime qual i ty and B-class office space is ver y s imi lar inBucharest and Budapest , showing that the Romanian office market recover s thegap more rapidly than other real estate sector. However an impor tant di f fe-rence is noticed regarding the vacancy rate , much lower in Bucharest , due to atotal stock shor tage , not covered even by the impor tant level of recent supply.In Bucharest , the rent for A-class is s lowly increasing, but probably i t wi l l havea stagnat ing trend, in v iew of the future del iver y on the office market , most ofthat being already pre- leased (but benefit ing from a ~10% discount) . Theincrease in pr ice for the construct ion mater ia ls (~25% in the last 6 months)wi l l most l ikely put an upside pressure on the rental levels . The effect wouldbe , in this case , not necessar i ly an increase of a l l the range of rents but at leasta stagnat ing lower level . This means that the low pr iced B-class office space wi l lnot decrease under €10 per sq m for the reasons presented above .There st i l l is room for absorption of new space , based on the high demandcoming from mult inat ional companies that need large surface of corporatespace at internat ional qual i ty and from local medium-sized enterpr ises in pur-suit of smal l and cost ef fect ive office areas .

Suprafata totala a spat i i lor de birour i din Bucurest i este de doar 900.000 mp,fata de cei 1.650.000 mp din capita la Ungar iei . Diferenta este s i mai mare dacaluam in considerare faptul ca Budapesta are cu 200.000 locuitor i mai put indecat capita la Romaniei . Inta lnim o s ituat ie s imi lara in cazul spat i i lor de birour ide clasa A. In t imp ce piata bucuresteana ofera aproximativ 250.000 mp despat i i de birour i , in Budapesta o suprafata aproape dubla poate fi cal i f icata careprezentand spat i i de birour i c lasa A.Chir i i le pentru spat i i le de birour i de clasa A s i B sunt asemanatoare pentruBucurest i s i Budapesta, aratand ca piata romaneasca a birour i lor reduce dindi ferenta mai repede ca or ice alt sector al pietei imobi l iare . Totusi , se poateobser va o di ferenta majora in ceea ce pr iveste indicatorul spat i i lor vacante ,mult mai mic in Bucurest i din cauza stocului mic de spat i i de birour i , neacoper i-ta nic i macar de impor tanta suprafata de birour i deja l ivrata .In Bucurest i , chir ia pentru spat i i le de birour i de clasa A este intr-o usoracrestere , dar va avea probabi l o tendinta de stagnare , avand in vederevi i toarele l ivrar i de pe piata , cea mai mare par te a acestora fi ind dejapreinchir iata ( in acest caz benefic i ind de o reducere de ~10% din pretulchir ie i) . Cresterea pretului la mater ia le le de construct i i i (~25% in ult imele 6luni) va inf luenta cel mai probabi l nivelul chir ie i . Efectul va fi , in acest caz, nuneapar tat o crestere a chir i i lor, c i mai degraba o staganare a nivelului minim alacestora. In acest caz, chir ia minimala perceputa spat i i lor de birour i de clasa Bnu va cobor i sub 10 Euro per mp dator ita motivelor prezentate mai sus .Exista inca loc pentru absorbtia spatiilor noi, si aceasta datorita cererii mari dinpar tea companiilor multinationale care au nevoie de o suprafata mare intr-o cladirede birouri la standarde internationale, pe de o par te, si din par tea IMM-urilor localecare cauta spatii de birouri de mici dimensiuni si la bugete atractive.

THE OFFICEMARKET OVERVIEW

PIATA SPATIILORDE BIROURI

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

Vacancy rate (block graph) and prime rent value (line graph) for Budapest and BucharestRata spatiilor libere (grafic cu blocuri) si valoarea chiriei clasei A (grafic cu linii) pentru

Budapesta si Bucuresti

THE INDUSTRIALMARKET OVERVIEW

PIATA SPATIILORINDUSTRIALE

Multa vreme considerata "Cenusareasa" pietei imobi l iare , piata spat i i lor indus-tr ia le (de depozitare s i logist ica) a renascut in vara anului 2005. In comparat iecu piata s imi lara din Ungar ia , putem afirma ca suntem inca mult in urma, unexemplu in acest sens fi ind faptul ca in jurul Bucurest iului s-au construit doar~300.000 mp de spat i i logist ice moderne fata de cei 840.000 mp situat i inaceeasi zona din Budapesta. Cu toate acestea, in 2005 au fost l ivrat i ~90.000mp si est imam ca in 2006 peste 120.000 mp sa fie disponibi l i pe piata spat i i lorindustr ia le .Avand o tendinta descrescatoare , chir ia pentru spat i i le de depozitare de cal i -tate din Bucurest i este s ituata intre 5 s i 6 Euro per mp pe luna, in comparat iecu Budapesta unde se poate inchir ia cu ~4-5 Euro per mp pe luna. O alta con-secinta a ofer tei scazute este rata spat i i lor l ibere in Bucurest i de sub 5%, int imp ce in Budapesta este de peste 12%.Dator ita numarului mare de parcur i logist ice care urmeaza a fi l ivrate pe piataromaneasca, est imam o reducere a di ferentei fata de tara vecina indusa de odublare a suprafetei de depozitare moderna in urmator i i 2 ani .Unul din cei mai impor tant i factor i care a inf luentat l ipsa spat i i lor logist icemoderne din Romania a fost infrastr uctura defic itara , cum sunt autostrazi le s icai le ferate pentru trenur i de mare viteza. In comparat ie cu cei 636 km deautostrada din Ungar ia , in Romania doar ~150 km au fost l ivrat i in ult imi i 17ani , exceptandu-i pe cei 113 km construit i anter ior. Invest itor i lor le ramane saspere ca autor itat i le au inteles in sfar s it avantajele pe termen lung ofer ite deinfrastr uctura potr iv ita s i de ut i l i tat i s i vor invest i in proiecte de dezvoltare aautostrazi lor s i a drumur i lor judetene , precum si in a l imentarea cu electr ic i tate ,gaz s i apa.

Long t ime considered the "Cinderel la" of the Romanian real estate market , thelogist ical and warehouse proper t ies market has been reborn s ince the summerof 2005. Compared with the s imi lar market in Hungar y we are st i l l far behind.For instance in Bucharest outskir ts only ~300,000 sq m of modern logist icalspace has been bui l t , compared to 840,000 sq m in the s imi lar area ofBudapest . However in 2005, the Romanian capita l mar ket exper ienced thedel iver y of ~90,000 sq m and we expect that in 2006, more than 120,000 sqm to be avai lable on the industr ia l mar ket as wel l .Having a decreasing trend, the rent for qual i ty warehouse spaces in Bucharestis s i tuated between €5 and 6 per sq m per month ver sus Budapest where ~€4-5 per sq m per month can be achieved. Another consequence of the low supplyis the vacancy rate in Bucharest (lower than 5%), while in Budapest is above 12%.Due to the impor tant logist ical center s proposed for del iver y on the Romanianmarket , we can est imate a gap reduct ion and a doubl ing of the modern ware-house faci l i t ies in the next 2 year s .One of the most impor tant factor s that inf luenced the shor tage of modernlogist ical spaces in Romania was the lack of proper infrastr ucture , such as high-ways and fast ra i lroad l ines . Compar ing to the 636 km highway network ofHungar y, in Romania only ~150 km have been del ivered in the last 17 year s ,beside the previously 113 km. Hopeful ly the author it ies have now under stoodthe advantages on long term for the local economy of a proper infrastr ucture ,road connect ion and ut i l i t ies , and wi l l invest in highway and local road deve-lopments and in electr ical , water and gas supply.

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

33

22

11

11

Key Logistics Locationsin Bucharest

1 Northern and North-Western Bucharest Area(DN1 Motorway);2 Western BucharestArea (A1 Highway);3 Eastern BucharestArea (A2 Highway).

Being one of the newest markets on the Romanian real estate sector, invest-ment act iv ity has exper ienced an impor tant increase in the past three year s .With the fir st major transact ion in late 2003, Romania was one of the lastEastern-European countr ies to be put on the investment map.However, 2005 was a booming year for investment deals in Bucharest . The totalamount involved in real estate investment transact ions was close to €250 mil-l ion, 80% being in office sector. Around 75% of the total represents dealsinvolv ing Bucharest proper t ies . A s imi lar s i tuat ion can be obser ved for theBudapest investment market as wel l , for instance in 2005 ~75% of Budapestinvestment market was in office space .In 2006 it is expected that the investment total value in Bucharest wi l l doublecompar ing to 2005. In the fir st 7 months, a few big transact ions have raised thetotal value of investment at above €200 mil l ion. The most impor tant develop-ment st i l l on the market is Amer ica House , which has a value of above €90 mil-l ion, based on some sources.Fol lowing a general trend in Eastern Europe , the Romanian market has a scarci-ty of avai lable qual i ty proper t ies . This s i tuat ion, cor roborated with the highdemand for office space wi l l force the investor s to buy proper t ies that are st i l lin the development stage and even to involve in rent ing the products . So farwe noticed this k ind of approach in the office and industr ia l mar ket , in cases ofMi l lenium Business Centre , Construdava I , Baneasa Airpor t Tower, BucharestBusiness Par k or Cefin Logist ic Par k, to name just the most recent ones. In thenear future , investor s wi l l have to be involved more often in the construct ionstage of a proper ty in a l l sector s of real estate .

F i ind una dintre cele mai noi piete din sectorul imobi l iar romanesc , act iv itateainvest it ionala a cunoscut o crestere impor tanta in ult imi i trei ani . Cu pr imatranzact ie impor tanta incheiata la sfar s itul anului 2003, Romania a fost pr intreult imele tar i din Europa de Est intrata pe har ta invest it i i lor.Cu toate acestea, 2005 a fost un an remarcabi l in ceea ce pr iveste numarultranzact i i lor pentru invest it i i in Bucurest i . Suma totala impl icata in astfel detranzact i i incheiate pe piata imobi l iara a fost de aproape 250 mil ioane de Euro,80% fi ind in sectorul spat i i lor de birour i . In jur de 75% din total reprezintatranzact i i cu propr ietat i in Bucurest i . O s ituat ie s imi lara se poate obser va pepiata invest it i i lor din Budapesta; de exemplu, in 2005 ~75% din aceasta piata afost in sectorul spat i i lor de birour i .In 2006 se asteapta ca valoarea totala a tranzact i i lor in Bucurest i sa se dublezefata de 2005. In pr imele 7 luni , cateva tranzact i i mar i au crescut valoarea tota-la a invest it i i lor la peste 200 de mil ioane de Euro. Cel mai impor tant proiectaf lat inca pe piata este Amer ica House , care are o valoare de peste 90 mil ioanede Euro, dupa unele sur se din piata .Urmand trend-ul general din Europa de Est , piata romaneasca se confrunta cul ipsa propr ietat i lor de cal i tate inca disponibi le . Aceasta s ituat ie la care se adau-ga cererea mare pentru spat i i de birour i , i i va for ta pe invest itor i sa cumperepropr ietat i af late inca in stadiul de dezvoltare s i sa se impl ice s i in inchir ierealor. Pana acum am obser vat acest t ip de abordare pe piatele spat i i lor de birour is i industr ia le in cazul Mi l lenium Business Centre , Construdava I , BaneasaAirpor t Tower, Bucharest Business Par k sau Cefin Logist ic Par k, pentru a leamint i doar pe cele mai recente . In v i i torul apropiat , invest itor i i vor fi nevoit isa se impl ice mai des in faza de construct ie a unei propr ietat i in toate sec-toarele pietei imobi l iare .

THE INVESTMENTMARKET OVERVIEW

PIATAINVESTITIILOR

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

Office investment for Budapest and BucharestInvestitii in spatii de birouri pentru Budapesta si Bucuresti

THE INVESTMENTMARKET OVERVIEW

PIATAINVESTITIILOR

In condit i i le de astazi , a le unei economii mai stabi le s i mai predict ibi le , piataromaneasca atrage din ce in ce mai mult i invest itor i , noi i venit i cautand o piatacu grad foar te scazut de r isc . In aceste condit i i , produsele invest it ionale au petermen lung o rata mai redusa a profitabi l i tat i i . In acelas i t imp, in c iuda uneicerer i impresionante s i a unei ofer te reduse , dezvoltator i i nu reusesc sa obti-na profitur i foar te mar i din cauza impor tantei crester i a pretur i lor la terenur i lebune cat s i a scumpir i i mater ia le lor de construct i i (crestere de 25% in ult imele6 luni) .In v i i torul apropiat , spat i i le de birour i vor pastra cea mai mare pondere dinpiata invest it i i lor, iar sectoarele rezidentia l s i comercia l (hipermarket-ur i s imal l-ur i) vor avea o cota din ce in ce mai mare in fiecare an. Piata spat i i lorindustr ia le reprezinta o invest it ie buna pe termen lung (mai mult de 3 ani) ,dupa ce proiectele mar i de infrastr uctura vor avea o evolut ie previz ibi la . Chiars i invest it i i le in terenur i raman profitabi le , de vreme ce sunt mai s igure decatpiata valor i lor mobi l iare s i mai atragatoare decat ratele dobanzi lor la banci .Acelas i lucru se poate spune despre mici i invest itor i din sectorul rezidentia l ,care prefera sa cumpere 2-3 apar tamente , sa le inchir ieze s i sa le vanda cu ran-damente de 8 pana la 10%. Pana acum, marea major itate a invest itor i lor deacest t ip au fost cetateni romani , insa in ult imele luni am fost mar tor i i inver-sar i i trendului astfel ca propor t ia invest itor i lor stra ini a crescut la peste 10%(in specia l din Marea Br itanie s i Ir landa) .Pe scur t , piata imobi l iara romaneasca ramane punctul fierbinte al afacer i lorinvest it ionale . Mar i le fondur i de invest it i i (cu un capita l disponibi l de peste 100de mil ioane de Euro) ca s i mici i invest itor i cu numai 100.000 de Euro pot gasiun produs bun pe piata romaneasca care le va garanta cast igur i mai mar i decatpe pietele Uniuni i Europene .

In the cur rent condit ions of a more stable and predictable economy, theRomanian market is attract ing more and more investor s . The newcomer s arelooking for a market with a ver y low grade of r isk . However this k ind has a lowprofitabi l i ty margin achieved on long term.At the same t ime developer s are not capita l iz ing on the lack of offer s , in spiteof the impress ive demand, due to the impor tant increases of both sel l ing valueof the good plots of land and the endearment of the construct ion mater ia ls(25% raise in the last s ix months) .In the near future office wi l l keep the biggest share par t in the investment mar-ket , with residentia l and retai l (`big box` and shopping mal ls) having an increas-ing s l ice ever y year. The industr ia l mar ket represents a good investment onlong term (more than 3 year s) after the big infrastr ucture projects have a pre-dictable evolut ion. Even investment in feasible plots of land st i l l remains a goodoppor tunity of capita l gain , s ince is safer than the stock exchange market andmore attract ive than the banks' interest rates . The same can be said about theemerging smal l res identia l investor s , which prefer to buy 2-3 apar tments , rentthem and sel l at 8 to 10% yield. Unti l now most of these investor s were locals .However in the past months we noticed a rever s ing trend and thus the rat ioof foreign investor s increased to more than 10% (especia l ly from Great Br ita inand Ireland).In shor t , the Romanian real estate market remains the hot spot of investmentdeals . Big investment funds (with cur rent capita l of more than €100 mil l ion) aswel l as smal l investor s with only €100,000 can find a good product on theRomanian market that wi l l guarantee better y ields compared to EuropeanUnion markets .

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

Office yields evolution for Budapest and BucharestEvolutia randamentului spatiilor de birouri pentru Budapesta si Bucuresti

At the core of the company's act iv it ies stands proper ty investment advisor y.A1 Group is owned by A1 Immobi l ien AG, the parent company of A1 Group,with its headquar ter in Switzer land.

A1 Real Estate has more than 130 people working in the recently openedoffice in Bucharest , in the Head Office in Switzer land and in the office networkoperat ing in Budapest .

The company star ted its Hungar ian operat ion with the aid of key market play-er s in 2003. Also, A1 i s represented by many real estate exper ts exper iencedin real estate consultancy and development. They are ready to provide themost up-to-date and rel iable advice in investment solut ions.

The team of A1 Investments invest igates the market with the eye of theinvestor. We know that who seek our exper t ise and knowledge have madewel l-thought decis ions in their l i fe . Their att i tude is the same as our s .

In centrul act iv itat i lor companiei se af la consultanta pentru invest it i i imobi l iare .Grupul A1 este det inut de A1 Immobi l ien AG, compania mama a Grupului A1 ,cu sediul in Elvet ia .

A1 Real Estate are peste 130 angajat i care lucreaza in biroul recent deschis dinBucurest i , in sediul din Elvet ia s i in reteaua de agenti i prezenta in Budapesta.

Compania s i-a inceput act iv itatea in Ungar ia in 2003, bizuindu-se pe ajutorulunor impor tant i jucator i de pe piata . De asemenea, A1 este reprezentata demult i exper t i imobi l iar i cu exper ienta in consultanta imobi l iara s i dezvoltare ,care pot ofer i consultanta actual izata s i de incredere in gas irea solut i i lorinvest it ionale .

Echipa A1 Investments cerceteaza piata invest it i i lor din per spect iva invest i-torului . St im ca cei care au nevoie de exper t iza s i cunost intele noastre suntper soane care au luat deciz i i bine gandite de-a lungul v iet i i . At itudinea lor esteaceeasi cu a noastra .

ABOUTTHE COMPANY

DESPRE COMPANIE

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1

OUR SERVICES

SERVICIILE NOASTRESer vic i i le A1 au la baza nevoi le atent masurate ale c l ient i lor s i se concentreazain jurul puner i i in pract ica a strategiei de invest it i i . In centrul ser vic i i lor A1sunt anal iza , reducerea s i controlul r iscului , toate intr-un mediu transparent .Arhitect i i , consultant i i legal i s i financiar i a i A1 vor cerceta propr ietat i le careurmeaza a fi ofer ite c l ient i lor. Imediat ce auditul intern al A1 va decide ca opropr ietate este in regula din punct de vedere legal , poate aduce profit s i seaf la in condit i i bune , compania va prezenta aceasta optiune pentru cl ient i .

In detal iu :

o Studi i de piata o Anal iza tendintelor pe piatao Anal iza planur i lor de dezvoltare regionalao Anal iza locat ie io Studi i de identi ficare a dest inat ie i optime a unei invest it i i o Optimizarea organizar i i de proiecteo Baze de date cu propr ietat io Crearea de concepte de vanzare s i mar ket ingo Vanzarea s i mar ket ingul dedicat pe proiecto Pregat irea finantar i io Optimizarea contractelor de inchir iere

A1 ser vices are based on the accurately measured customer needs, and focuson the investment strategy's execution. At the centre of the A1 ser vices standr isk analys is , r isk decreasing, and the transparent r isk handl ing.The architects , lawyer s and financia l adviser s of A1 wil l invest igate the realestates that wi l l be offered to our c l ients . As soon as the ins ide-audit of A1f inds the proper ty legit imate , legal , benefic ia l and in good condit ion, the com-pany wi l l provide the purchasing option for i ts customer.

In detai l :

o Market Researcho Trend repor tso Regional development plan's analys iso Proper ty locat ion advisor yo Usage conceptionso Optimizat ion of project organizat ion o Proper ty data baseo Sales and market ing conceptso Dedicated sales and market ingo Financing-preparat iono Optimizat ion of tenancy agreements

R E A L E S T A T EI M M O B I L I E NI M O B I L I A R E

A1