The volume of land transactions for commercial and residential projects totaled €800 million in 2021, which is a 15-year high, according to real estate consultancy Colliers. Retailers and residential developers have generated roughly 90% of the deals.
Total volumes have rose significantly compared to 2020, when land transactions totaled €310 million.
During 2021, Bucharest accounted for around 70% of total land transactions, while the rest was covered by cities of the likes of Timișoara, Brașov and Cluj-Napoca.
“The prospects for 2022 are good, but a bit more subdued. Following a year that has been just as active as two normal ones, it will take some time for the market to absorb the pipeline of real estate projects, especially in the residential sector. Moreover, in Bucharest and in other areas of the country, there are some blockages or delays in the permitting process which can lengthen the entire acquisition process and the delivery of projects. Therefore, we expect a significant market volume for 2022, albeit below 2021 level, and a quasi-stagnation of prices, though exceptional land plots in a great position and benefiting from approved urban planning documents can attract better offers,” said Sînziana Oprea, Director of the Land Agency at Colliers.
The agency added that the generous supply of land, alongside the fact that future development margins will be under pressure by the rise in the price for construction materials, have limited the increase in land prices to an average of 10-15%.
According to Colliers data, the land market has doubled compared to 2019 and reached levels we have not seen since the 2006-2008 boom.
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