„From my point of view, Expozitiei area in Bucharest has the biggest potential of becoming the top hotspot for the future of real estate in our city” – Ionuț Stan, Associate Director, Land Development, Crosspoint Real Estate. „For the future, the market is seeing for the first time in over a decade a series of decentralization” – Cătălin Gavrilă, Associate Director, Land Development, Crosspoint Real Estate.
How is the market in 2020?
Ionuț Stan, Associate Director, Land Development, Crosspoint Real Estate: Even if we were in a difficult period caused by the Covid-19, the Romanian real estate market went through a positive period in 2020 and this only can show us that the fundamentals are strong. Things are moving fast on the market and the northern area of Bucharest is the one that has developed the most in the latest years. Expozitiei has a very good potential for the office segment, a good connection with the CBD, Otopeni Airport, or Herastrau Park. Moreover, the most expensive real estate project in Romania (approx 2.8 billion euros) is planned to be developed by Iulius Group on the Romexpo site in Expozitiei, a mixed-use development that will create the city’s largest business district with over 30,000 new jobs, a multi-use event hall, with a lot of green urban spaces. And because “the future is already here”, in Expozitiei we are talking today about big players on the market that already have stepped in with projects in the area: Impact, Cordia, London Partners, Atenor, Niro Group, etc.
Published in an exclusive, investment destination – oriented, market tour: “Bucharest – the skyline transformation by 2025” – Read: here
Trends for the future?
Cătălin Gavrilă, Associate Director, Land Development, Crosspoint Real Estate: “Expozitiei area was 3 years ago more of an idea rather than the well established development hub that is today”. One of the first deals pioneering the area was: Parcului 20 – Vendor Alpha Bank / Buyer Cordia. The project is already completed and sold in its entirety for the first phase. On the office side, in Expozitiei in 2017: Blue Rose Office Park – Landowner Bluehouse / Developer Portland Trust – Expo Business Park. The project is already build and operating, being handover to the tenants. In the city center, a very important urban regeneration project is sector 0 that begun with the sites acquisition 3 years ago: Tandem – Vendor Telekom Romania / Buyer Forte Partners; Millo – Vendor Telekom Romania / Buyer Forte Partners; One Floreasca City – Vendor Global Finance / Buyer One United Properties. The project is already completed and waiting the reception and finishing touches. Romcarton – Vendor Romcarton SA / Buyer Aedificia Star Construct. The project is in full swing with 6 buildings already up from the total 12, comprising of almost 2,000 units. Main land transaction of this year: IMGB – Vendor Doosan Heavy Industries / Buyer SIF 1 Banat Crisana; Petrom City Rezi – Vendor OMW Petrom Group / Buyer Bog’art Group / Salajan retail Park – Vendor Energomontaj / Buyer Eres Development. For the future, the market is seeing for the first time in over a decade a series of decentralization and deurbanization forces created by the sanitary crisis and the new paradigm that Covid imposed. In a work from anywhere world we see a rush to the suburbs or to less dense areas, but with good connections and infrastructure. We see projects such as Liziera de Lac of Liebrecht & Wood that are very far from the city but made the necessary connections to the road system and to the highway – the distances will no longer be measured in kilometers but rather in minutes tot the main destinations in people’s lives.
- In 2019 alone, approx. 215 M euros were invested in 25 transactions in Bucharest.
- In the last 5 years, the value for land transactions reached 800 M euros and we estimate a new wave until 2023-2025 of 600 M – 1.1 bn Euros.
- By the end of Q3 in Bucharest, approximately 200 M EUR deals signed & closed. Another 100 in the pipeline not yet closed.
Published in an exclusive, investment destination – oriented, market tour: “Bucharest – the skyline transformation by 2025” – Read: here
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