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Trading with land surpassed 350 million euro last year: 70% of the value belonged to the capital city
The total value of the trading with land for residence projects (except for the industrial sector) increased significantly in 2017 against 2016, surpassing the threshold of 350 million euro at national level, approximately 70% of this value belonging to the capital city, where land tradings for residential developments represented more than half of the investment volume, according to a specialty study.
The dynamism of the residential sector as regards acquisition of land came as a result of the capacity of the market to absorb, both small projects and projectsof over 1,000 apartments, as, according to the surveys made by the European Commission the desire to buy a residence was the highest post-crisis level. According to the study made by the real estate consultancy company Colliers International, the most active areas were in the centre and north of the capital city – Bd.Expozitiei, Bucurestii Noi and the area Baneasa DN1 Jandarmeriei, due to the future offices area in the Expozitiei zone, as well as the Floreasca – Barbu Vacarescu, Avitiei and Pipera areas.
‘The land market gets through one of the best periods over the last 10 years. The demand was diversified during 2017 from the point of view of the areas of interest and the real estate sectors which need surfaces for new developments. Moreover, new investors got on the market, drawn by the superior yields offered by real estate development on the local market as compared to other markets or economic sectors. In Bucharest, the residential sector got more than half of the value of the trading with land, which grew especially in value, the rest being taken over approximately equally by the retail and offices sectors’ Sinziana Oprea, manager with Colliers International Romania said.
As regards the interest offered to acquisition of land for the retail sector, this was better represented at the level of the country rathen than Bucharest. The demand came equally from developers and retailers and aimed at cities with deficit of modern retail spaces, including those with population under 100,000 inhabitants.
In Bucharest the biggest trading was the sale of the Policolor site – 14 ha – for approximately 22 million euro, for a mixed project (retail and residential). Other important tradings were the acquisitions made by GTC, Impact Developer &Contractor and Atenor Group in the Bd Expozitiei area, around 10 million euro each, the sale of the Fabrica Industriei Iutei and the corresponding premises – 2.7 ha – to Dedeman ( approximately 6.7 million euro) and the acquisition of the Coca Cola land with a surface of 5.7ha made by Globalworth in Preciziei area, for the future Renault headquarters.
The Expozitiei area was noticed mainly as the most traded area in Bucharest, with six tradings for office, residential or mixed developments, trading were big players were involved. Approximately eight ha of land were secured by the latter in the area (plus the land for the Romexpo exhibition pavilions which were the object of the association between CCIR and Iulius Mall) the majority with valid urban plans which allow the investors to start the projects.
At national level, the evolution of prices was similar to that of 2016,growing on average by 10-15% against 2016. Their dynamics varied, but depending on the region, thus some cities or areas in Bucharest kept their value of 2016. Even so, the interest for the centre and the north of the capital city and for the regional cities in full development from the point of view of the office market (Cluj-Napoca, Ia?i, Timi?oara, Bra?ov)determined a growing trend of the price.