JLL has identified several areas in Bucharest where historical buildings could enter the commercial real estate circuit with investments in upgrades and rehabilitation. The areas include University Square, the Old Town, the Regina Elisabeta Boulevard, Calea Victoriei and the Cismigiu area.
The areas include numerous historical buildings, well maintained and conserved, that require lower investments from prospective buyers. On the other hand, theese historical buildings are generous in size, JLL noted.
Metropolis Center, George Enescu Office Building, Aviatorilor 8, Bratianu Business Center, Dionisie Lupu 70, Hilton Garden Inn in the Old Town, the Sanador hospital on Sevastopol street near Victory Square, Palatul Universul, The Ark are a few of the best known historical buildings repurposed as new, modern spaces, it added.
Dacia One, two former office buildings on Calea Victoriei bought by Israel’s Hagag, the project developed by Hanner on the location of the former Grivita beer factory, Hotel Corinthia (Grand Hotel du Boulevard), hotel Autograph by Marriott are currently under various stages of development.
Historical buildings in downtown Bucharest could attract investments of hundreds of millions of euros, would create jobs and, in the case of hotels, would attract tourists, JLL said.
Investor interests for such projects also stems from the downtown area being one of the most sought after for offices. The vacancy rate in the area is below 5% and a single office building, totaling 12,000 square meters, was delivered in the area in 2018, while demand stood at 72,176 sqm (25% of net demand for office stock in Bucharest in 2018).