“Those who own plots in Bucharest and especially those who bought land for residential projects are returning to the market and thinking what they should do with these investments. Depending on the location, these investors could build 3-4 star hotels, which business tourism requires, or small shopping centers,” Wednesday said James Heyworth Dunne, head of the capital market department within CBRE Romania.
He added there will not be many such shifts, but a few will be seen in the near future.
Razvan Iorgu, chief executive officer of CBRE Romania, said the developers need to decide on what to do with the plots within the next 2-3 years.
“There are many Spanish investors in this situation, who will need to decide – sell or develop,” Iorgu said.
CBRE representatives believe the residential market’s recovery in Romania does not only depend on access to funding, but also on the price of land.
“Buyers are willing to pay the equivalent of EUR200 per built square meter. However, it’s tough to find land at this price, because sellers are unwilling to accept these prices, especially those who bought in 2006-2007,” Iorgu said.
On the other hand, Iorgu added, housing demand targets especially prices below EUR100,000, a price range mainly found in old flat buildings.
The company representatives estimate that investors will be mainly interested in the office and retail segments this year.