Residential developers have been the most active in terms of land acquisitions in the past 2.5 years, as they secured land plots which allow the construction of more than 30,000 units in all parts of Bucharest, according to data from real estate consultancy Cushman & Wakefield Echinox.
Total land transactions on the Bucharest market amounted to €720 million between 2020 and the first half of 2022, up almost 50% compared with the previous five semesters.
Industrial and logistics players concluded land transactions for an area totaling over 1.2 million sq. m in the same period, on which over 500,000 sq. m of industrial and logistics spaces could be developed.
Moreover, the retail chains such as Kaufland, Lidl, Rewe (Penny), continued to buy new land plots, aiming to expand their local networks.
The total transacted area amounted to approximately 470 hectares in the analyzed period, with 85 transactions being considered at an average value of €8.5 million euros per deal.
”The demand for land plots in Bucharest remains high despite the difficulties regarding the authorization of new projects due to bureaucratic issues, the increase of construction costs and high inflation. Bucharest still offers important investment opportunities, including former industrial platforms, located in areas without many new developments, which could provide a competitive advantage for those acquiring them. Land plots for residential investments will remain the most sought after in the future, but, in the context of economic, geopolitical and inflationary concerns, developers will need to find alternative financing solutions for the clients who aim to purchase new dwellings within their projects," said Alexandru Mitrache, Head of Transactions - Land & Investment, Cushman & Wakefield Echinox.
The biggest land transaction completed in the year to date saw Edificia Star Construct buy 248,000 sqm from the Chimopar industrial platform located in Bucharest, where it plans to develop a significant residential project. Furthermore, two other properties were among the largest land transactions, namely a 240,000 sqm land plot near the A2 highway towards Constanța and a 65,000 sqm one in Popești Leordeni, bought by industrial and logistics developers VGP and WDP, respectively.
