Some of the largest acquisitions were performed by local investors, such as ERES, DVD Residential Imobiliare, Eden Capital Development, Impact and Exigent Development, which along other local developers contributed to almost 51% of the total volume transacted.
“In 2018 we expect the lands of other former large factories such as Griro, Helitube, or Aversa, which stretch on areas of around 10 ha, will enter the real estate circuit for the development of residential, retail and mixed-use projects, including offices. Also, former factory lands of 5-6 ha, such as Ventilatorul and Textila Dacia, are available for sale. We expect developers to make major acquisitions this year,” said Alexandru Mitrache, head of land development at C&W Echinox.
The perspective on the Bucharest land market remains positive, but the number of large sites inside the city, with utilities and public transportation nearby started to lessen. Vacancy rates for office, retail and logistics properties continued to decrease during 2017, reflecting a sustainable demand from the occupiers.
While local investors focused mainly on sites suitable for residential development, foreign investors, such as GTC, Atenor and Globalworth have secured positions for new office projects in the northern and western parts of the city. With a total transaction value worth of EUR110 million, the Romanian investors were the most active, followed by South African and Israeli groups.
Sites for residential projects have been transacted in all parts of the city, but the northern area of Bucharest was the most sought-after, as developers have tried to position their projects closer to the main office hubs. Sites summing up approximately 48 ha were transacted for residential projects. When developed, these sites will be the ground for 10,000 – 15,000 new residential units.
On the office segment, the five transactions concluded in 2017 ensure a pipeline for around 200,000 sqm of new office space to be delivered within the 2019 –2021 period.
The most important transactions involving sites suitable for retail projects were two former factories – Policolor and Industria Iutei – which were acquired for the development of a retail park and respectively a DIY store.
A1 highway remains the most attractive area for the logistics segment, since CTP and P3, two of the major owners and developers, decided in 2017 to strengthen their position through new land acquisitions. To the north, close to Chitila, the Polish group MLP decided to re-enter the local market through the acquisition of an 18.8 ha site, suitable for the development of an 80,000 sqm logistics project.