According to JLL, the potential of this market segment is very high given the demand for office space and modern hotels in downtown Bucharest.
"From the studies we have made on this market segment, we have identified several areas in Bucharest where there are historic buildings that, through investments in modernization and rehabilitation, could enter the commercial real estate circuit. Among them are University Square, Old Center, Queen Elizabeth Boulevard, Calea Victoriei and the Cismigiu area", according to JLL representatives.
Thus, there are many historical buildings in these areas, well maintained and preserved, and which therefore require less investment by potential buyers. On the other hand, these buildings are generous in size, allowing investors to make more attractive projects in commercial terms.
Metropolis Center, George Enescu Office Building, Aviatorilor 8, Bratianu Business Center, Dionisie Lupu 70, Hilton Garden Inn in the Old Center, Sanador Hospital on Sevastopol Street, The Universe Palace, The Ark are some of the most famous projects which resulted from the modernization or conversion of old buildings into new, modern spaces. Dacia One, the two buildings on Calea Victoriei bought by the Hagag group, Hanner's project on the site of the former Grivita brewery, Hotel Corinthia (Grand Hotel du Boulevard), Autograph by Marriott, developed in the place of Marmorosch Blank, one of the more beautiful buildings in Old Bucharest are other such projects at various stages of development. Thus, according to JLL, all these projects could attract a total of hundreds of millions of euros worth of investment, create jobs and, in the case of hotels, attract tourists.
In view of these developments, JLL consultants expect a change in investor approach to old buildings in the sense that they are no longer used by embassies or law firms but are most often converted into hotels or integrated in larger projects with the office component.
The segment develops mainly due to the central location of these properties, but also due to the desire of developers to make projects more interesting in terms of design. Maintaining the historic character of these buildings - through strict restoration or renovation with the change of destination - can increase the attractiveness of the project by preserving and utilizing special features and finishes with respect for historical character and uniqueness of ownership. (source: forbes.ro)
