The interest for mixed projects is on the rise, according to Cushman & Wakefield Echinox.
Compared to the previous year, the value of transactions increased by 13%, amid a high interest from the developers in the residential segment, but also on the trading of large lots suitable for the development of mixed projects, according to the company, which has monitored 31 medium and large transactions.
"The land market in Bucharest registered the third consecutive year of growth, but it is 60% below the 2007 level, the best year in terms of volume traded, with a total of about 628 million euros", shows the company.
Cushman & Wakefield Echinox’s representative, Alexandru Mitrache, believes the Bucharest land market is in a healthy growth phase. "The land market in Bucharest is in a healthy growth phase, where prices are determined by detailed analysis of the rhythm and trading value of the properties that can be built on the land. Thus, prices remain stable and recent transactions show that some lots are sold at 50-70% reduced prices over the 2006-2008 period. It is important that these lots are now traded at fair prices and can re-enter the capital's real estate circuit, because by their size they can radically change the significant areas of the city", Mitrache said.
As in 2017, Romanian investors continued to be the most active buyers, with a market share of 49%, followed by Belgian investors such as Mitiska-REIM, Speedwell or Atenor, with a 17% share, and of those in Israel (15%), according to the company.
Romanian investors are particularly active on the segment of residential land, foreign groups such as Globalworth and Portland Trust have secured new plots for the development of office buildings, while WDP or P3 have bought land for logistics developments.
The biggest deal was made by the AFI Europe group, which bought a 4.3 hectare plot near the AFI Palace Cotroceni mall, where it plans to expand both its shopping center and AFI Business Park. In the top of the trading values there were also two lands in Răzoare - Cotroceni and Floreasca areas, bought by One United group, the land of the former Helitube factory in Colentina or a plot of 4.6 hectares on the Jandarmeriei street in Băneasa area. (source: profit.ro)