Record land purchase for real estate projects in Bucharest
The land market in Bucharest reached a new record in volume last year, according to real estate consultancy firm Cushman & Wakefield Echinox.
Investors acquired more than 110 hectares of land in 2016, up 144 percent on 2015. The land purchases were even 3.5 percent higher than in 2007, the year of the previous real estate boom.
In value, the land transactions in Bucharest amounted to EUR 127 million last year, up 41 percent on 2015.
The market was primarily driven by the residential sector, which attracted investors in the city’s northern area. The logistics sector also continued to grow, mostly in the western part of the city, at the entrance of the Bucharest – Pitesti highway.
Almost 90 percent of the land traded last year was destined for the development of residential projects (62.8 percent) or logistics projects (26.4 percent). The largest transaction, both in volume and value, was the acquisition of a 48-hectare plot in the Baneasa area by Vastint. The company plans to develop a mixed project, mainly with a residential use. Vastint is part of Switzerland-based Interogo Holding.
Another important deal was the acquisition of the plot that hosted the former factory Automatica, in the Floreasca area, by the groups One United and Auchan.
“Besides the increase in the volume and value of land transactions, we have also seen a significant diversification of the buyers’ profiles,” said Alexandru Mitrache, Commercial Land Development Cushman & Wakefield Echinox. “Companies such as Strabag Real Estate and Prime Kapital made their first land purchases in Bucharest last year while groups such as Atenor, Hanner, and Auchan made new transactions after many years of inactivity.”