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Real estate: The residential market in Romania is underdeveloped in 2016
The residential market in Romania is underdeveloped in 2016 and investors will continue to acquire land for development on a long term, according to a report of the real estate consultant DTZ Echinox. 2016 started with a significant trading for the land market of Bucharest. Vastint,Swedish investor acquired a surface of 48 ha inBaneasa – Sisesti for a mixed project (mainly residential). As a total, in Q1 2016 land with commercial destination worth 35 million euro, double value against the same period of last year. The residential market ofRomania is underdeveloped, and the investors will continue to acquire land for development on a long term, with accessible prices and rising demand for new buildings’ the document says.
According to the document, the dominant retailers – operators type ‘big box’ –continue to have plans for extension in Bucharest and will be among the most active buyers in 2016 with the areas of high residential densities in mind.
‘In Bucharest significant deliveries of office buildings are estimated for 2016 and 2017. Even so, from the moment the financing is restrictive, it is possible that part of the planned projects for 2018 be sold before the beginning of the construction’ the quoted document says.
In Bucharest in 2015 land with commercial destination with a total surface of 45 ha and cumulated price of 90 million euro was traded. The most active buyers who acquired land for commercial development were Swedish and local investors.
‘The most interesting acquisitions were made by players such as IKEA and Skanska: IKEA acquired land in the eastern part of Bucharest while Skanska acquired two pieces of land in Bucharest – one in Barbu Vacarescu – Floreasca (in the central-northern part of Bucharest) and one in Politehnica area (the western part of Bucharest). Both locations are among the most important destinations for offices in Bucharest .Greek and Austrian investors who were among the most active in Romania over the last decade, did not have significant acquisitions in 2015’ the quoted source says.