Almost 60 hectares of land plots suitable for the development of real estate projects were transacted in the Bucharest – Ilfov region in the H2 2022 – H1 2023 period, with former industrial platforms accounting for some of the largest transactions, according to a report by Cushman & Wakefield Echinox.
Some of the biggest properties transacted in the past 12 months include the former Titan Mar platform on Soseaua Progresul (45,000 sqm), the former Muntenia oil factory near Parcul Carol (57,000 sqm), the Atlas platform in Pipera (28,500 sqm), and the Helitube platform in Colentina (89,000 sqm).
In the last 12 months, the industrial & logistics players, some of the most active buyers in recent years, were less present in the market, as their current land banks provide a consistent pipeline. Office developers were absent in the market due to the lack of clarity of permitting of new projects.
“In this context, we believe that sellers may become more flexible with their expectations, without necessarily resulting in significantly lower amounts being paid for the most sought-after land plots available on the market. The prices generally followed a linear trend in the analyzed period, as most transactions were closed within a normal margin of negotiation, which was 15% below the requested prices on average," said Alexandru Mitrache, Head of Transactions - Land & Investment, Cushman & Wakefield Echinox.
Retail chains, mainly the German ones (Kaufland or Lidl respectively), continued to acquire land in order to expand their portfolios in Romania, while also purchasing former industrial platforms in densely populated areas. The land acquisitions were split between Romanian and foreign investors (Belgian, German, Swedish, Hungarian, and Turkish).
