The most active areas were the center and north of Bucharest: Expozitiei Boulevard, Bucurestii Noi and the Baneasa-DN1-Jandarmeriei area - due to the future pole of offices in Expozitiei area, but also the Floreasca-Barbu Vacarerescu, Aviatiei and Pipera areas.
"The land market is experiencing the best period of the past 10 years. Demand has diversified in 2017 from the point of view of interest areas and real estate sectors that need surfaces for new developments. Moreover, new investors have entered this market, attracted by the higher yields offered by real estate development in the local market compared to other markets or economic sectors. In the capital, the residential segment accounted for more than half of the value of land transactions, which grew especially in value, the rest being taken up almost equally by the retail and office segments", said Sînziana Oprea, associate director of the Land Department Colliers International Romania.
As regards the interest in land purchases for the retail sector, it was much better represented at country level than in Bucharest. Demand came from both developers and retailers and targeted all cities with a shortage of modern retail space, including those with a population of less than 100,000.
The office land market activity increased in 2017 as compared to 2016 especially in Bucharest, where most of the large developers already present have acquired plots for new projects. The areas of greatest interest were Expozitiei Boulevard, followed by Preciziei Boulevard and the central area (Calea Victoriei).
In Bucharest, the largest transaction was the sale of the Policolor platform - 14 ha - for approximately 22 million euros, in order to develop a mixed retail and residential project. Other notable transactions were the purchases made by GTC, Impact Developer & Contractor and Atenor Group in the Expozitiei boulevard area - transactions of around EUR 10 million each, the sale of the former Industria Iutei factory platform - 2.7 ha - to Dedeman, in a deal worth approximately 6.7 million euros and the acquisition of the 5.9 hectares of Coca Cola, made by Globalworth in the Preciziei area for the future Renault headquarters. Expozitiei area was noted as the most traded in Bucharest, recording six transactions for office, residential or mixed office development projects involving large players such as Portland Trust, GTC, Atenor Group, Impact Developer & Contractor, Futureal and Iulius Group.
Approximately 8 hectares of land were secured by them in the area (plus the area within Romexpo exhibition pavilions, which were the object of the association between CCIR and Iulius Mall), most of them with valid urban plans that allow investors to start fast projects.
As regards prices, at national level, their evolution was similar to that of 2016, increasing on average by 10-15% compared to 2016. Their dynamics varied, however, by region, so that some cities or areas in Bucharest have retained their values in 2016. However, interest in the center and northern part of the capital city and in developing cities in terms of the office market (Cluj-Napoca, Iasi, Timisoara, Brasov) determined an upward trend in land prices. (source: profit.ro)
