2024 looks to be a very good year for strategic acquisitions in the land market, given the favorable long-term outlook.
Activity in the land market has slowed over the past year, but investor enthusiasm for Romania’s long-term potential remains stable. Demand for strategic land plots, which now can be secured at more interesting terms than in a highly active market, is growing, Colliers Consultants note. This trend is attracting the interest of major developers looking to strengthen their position in the property market.
The volume of land sales for commercial real estate projects in Romania (excluding for industrial and logistics projects) declined by less than 10% from the 2022 level of 450 million euro, and remains considerably above pre-pandemic levels, according to Colliers estimates.
The land market remained very active in the first half of 2023, reaching an estimated turnover of around 250 million euro. This volume includes only transactions involving land for commercial real estate projects in sectors such as residential, office, retail, without segments such as industrial or energy, reveals Colliers in its market report on the evolution of the real estate market in the first semester of this year.
The volume of land sales for commercial real estate projects in Romania (excluding for traditional industrial and logistics projects) reached approximately 450 million euros in 2022, down from almost c.800 million euros a year earlier, according to Colliers estimates.
Czech real estate developer PPF Real Estate is in the process of acquiring a plot of land of about 8,000 sqm in the Orhideea area of Bucharest, from the RC Europe group, a transaction estimated at over EUR 10 million. The deal will be completed in about 2-3 months.
The volume of transactions with land dedicated exclusively for residential and commercial projects (office, retail, hotel) saw last year its highest value since 2007. The market has increased more than two and a half times compared to the estimated volume of 310 million euros in 2020, according to Colliers data.
A company managed by Michael Topolinski recently concluded a new sale-purchase contract for the 5.2 hectares land of the former Dacia Textile factory at a price of almost 18 million euros, over ten years from the first purchase, when he paid about 40 million euros for the factory assets, according to the documents analyzed by Profit.ro.
Immofinanz, one of the most important real estate investors in Romania, has finalized the sale of the land of the former industrial platform Ventilatorul in Bucharest, with a total area of approximately 53,000 sqm, to One United Properties, a developer specializing in luxury residential properties.
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