The developer estimates the housing stock delivered last year is more valuable as, after a break of nearly four years, in 2014 developers in Bucharest completed projects in central areas and expensive locations, while in previous years construction targeted mainly locations on the city outskirts or outside the city limits.
Developers’ investments increased mainly due to land prices and higher quality construction materials. Hanner estimates the value of investments per square meter in Bucharest increased by at least 10% in 2014.
“With constructions in central areas, the land price is more than 30% of the total investment. For constructions on the outskirts of the city, land may account for as little as 10%,” said Mindaugas Valuckas, executive manager of Hanner Holding.
The Lithuanian developer has built The Park project, on the southern side of Tineretului Park in Bucharest, in an investment of around EUR37 million.
Hanner Group is the largest real estate developer in Lithuania with assets and developments of around EUR1 billion in Lithuania, Latvia, Russia, Ukraine and Romania and targeting expansion into Germany and the UK.