The total area of land traded in Bucharest last year reached 116 hectares, the highest volume recorded over the past 10 years, according to Cushman & Wakefield Echinox. The value of these land transactions is estimated at EUR 216 million, up 69 percent over the previous year.
Moreover, Romanian developers, especially interested in the residential segment, were the most active buyers of large land in the Capital and neighboring areas, a first of the last decade in which foreign investors were the majority,
Companies controlled by Romanian investors such as ERES, DVD Residential Imobiliare, Eden Capital Development, Impact, Exigent Development or H4L Development, made transactions with a cumulated value of EUR 110 million, bringing almost 51 percent to the total traded volume.
While the local investors focused mainly on land suitable for residential projects, the foreign investors such as GTC, Atenor and Globalworth have secured positions for new office projects in northern and western Bucharest.
Overall, 48 hectares for residential projects were traded last year on which 10,000-15,000 new housing units can be built, Cushman & Wakefield Echinox data also show.
A1 motorway remains the most attractive area for the logistics segment, as CTP and P3 decided in 2017 to consolidate their position through new land acquisitions.
”For 2018, we expect the land of other large factories, such as Griro, Helitube or Aversa, that cover over 10 hectares each, will enter the real estate circuit for the development of residential, retail or mixed projects, including office projects. At the same time, the lands of other former factories with areas of about 5-6 hectares, such as Ventilatorul or Textila Dacia, are available for sale and in of interest to developers. Thus, to secure the key locations for Bucharest’s future significant projects, the developers could make important acquisitions this year as well,” Alexandru Mitrache, Head of Land Development stated.