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Real Estate: Bucharest land transactions at 10-year high in 2017, with 116 traded hectares
A total surface of 116 hectares of land has been traded in Bucharest in 2017, the largest such surface in the past 10 years; Romanian developers, who mainly focused on the residential sector were the most active buyers of large plots, also located in the surroundings of Bucharest, shows an expert survey by Cushman & Wakefield Echinox released this Thursday.
The trading value of these properties is estimated at 216 million euro, up 69 percent from 2016, the survey shows. Companies controlled by Romanian investors such as ERES, DVD Residential Imobiliare, Eden Capital Development, Impact, Exigent Development or H4L Development performed transactions worth an aggregate 110 ml euro, contributing almost 51 percent of the total traded volume.
Whereas local investors concentrated mainly on plots suitable for residential projects, foreign investors such as GTC, Atenor and Globalworth sought locations for new office projects in the north and west of the city.
However, the largest share (almost 42 percent) of the total volume traded was for residential projects in various areas of the city, with a higher focus in the north and west. A combined 48 hectares have been traded for residential projects that will see about 10,000 - 15,000 new homes built.
The A1 Bucharest-Pitesti motorway remains the most attractive area for the segment of logistics, as two major property owners and developers, CTP and P3, decided in 2017 to consolidate their position through new land acquisitions. In the area of Chitila the Polish group MLP decided to return to the local market by acquiring 18.8 hectares of land to develop a logistics project spanning 80.000 sqm.