OTP Bank Romania increases financing volume for real estate projects in 2018
OTP Bank Romania, subsidiary of OTP Bank recorded a significant increase in the volume of corporate finance in real estate sector by 43.8% in 2018.
The evolution was due to the increased appetite of real estate developers, especially for office buildings, which resulted in an increased demand for financing in the real estate industry.
The financing granted by OTP Bank Romania in 2018 was for residential projects, office buildings (development of new buildings, but also modernization of existing buildings) as well as for logistics and commercial spaces.
The average amount of funding for real estate projects varies depending on the type of project. Thus, for office buildings, the average was EUR 12 million per project, and for residential buildings the average loan was EUR 5.5 million per project. The highest funding granted in 2018 was EUR 15 million for the development of a commercial space in Bucharest, amount added to a loan previously granted.
In 2018, most investments were directed to Bucharest, with 52% of the total volume of financing being accessed by real estate developers. The other loans were for developers in Sibiu (19%), Oradea (18%), Drobeta -Turnu Severin (5%) and Cluj-Napoca (2.6%).