If plans materialize, the Bucharest map will radically change, because investments in the subway network will lead to the creation of new residential neighborhoods, new office areas and will also modify traffic flows.
The investment necessary for this mega project are estimated at EUR8.5 billion, but the new subway stations will also draw further investment in office space, residential complexes or shopping centers, writes BUSINESS Magazin.
Bucharest’s subway network has four mainlines now and will add five new ones over the next two decades, while also extending its existing lines, as Metrorex plans.
The lines that could cross Bucharest in twenty years from now include Line M4 Gara de Nord – Gara Progresul (North Railway Station – Progresul Railway Station in southern Bucharest), which should cost EUR950 million, Line M5 Drumul Taberei – Pantelimon (connecting the west and east sides of the city) – EUR1.7 billion, Line M6 Otopeni – 1 Mai (connecting the Otopeni Airport and Line M4) – EUR850 million, Bragadiru-Voluntari line (connecting the two towns neighboring Bucharest in the southwest and north), EUR1.9 billion, as well as the southern half ring, expected to cost EUR1.3 billion and connecting Dristor and Crangasi stations and thus the south and southwestern parts of the city.
Other investments put at EUR1.8 billion should go into extending the already existing lines, running from Pacii (west of the city) to the Beltway West, EUR250 million, Laminorului-Mogosoaia (going from a station planned for Line M4 to the commune beyond the NW border of the city), EUR290 million, Pipera – Tunari (north of the city), EUR650 million, Pantelimon – Cernica (east of the city), EUR250 million and Ghencea-Domnesti (southwestern Bucharest), EUR400 million.
Using the Pipera model, where one quarter of Bucharest’s office buildings are located, more areas where subway stations will be built may become real estate development spots.
Real estate consultants, however, say that it is too early to tell how Bucharest might look in twenty years, after the subway should expand and cover most of the city. They are positive that the northern part of the city will remain the office space area of choice in the short and medium run, though, but other parts of the city are catching up.
“Office areas of choice will remain those in the central-northern part of the city, at least for corporate headquarters. The western and eastern areas are becoming increasingly more interesting as back-office building locations,” says Cristian Ustinescu, investments director with real estate consultant DTZ Echinox. “The expansion of the subway network will create suburb-like developments that we hope will improve traffic flow in the center of Bucharest and relieve some of the pressure people feel when faced with the decision to buy a home.”
He expects social housing or youth housing projects to be built in east and south of Bucharest and maybe middle class suburbs in the north.
“Several thousand homes can be delivered in the coming years depending on the progress of these infrastructure works,” he added.
The only subway section currently being built is the Raul Doamnei – Eroilor part of the new M5 line connecting Drumul Taberei and Pantelimon. The section, which will be 6.22 kilometers long and built for 215 million euros, will serve about 200,000 people.
Oana Iliescu, managing director with DTZ Echinox says the completion of the M5 line will have a significant impact on the future real estate development.
“Access to a subway line is one of the first requirements office and retail developers try to meet when choosing the location of a new project,” Iliescu says.
There is potential for retail development along the M5 line, from a smaller hypermarket to a larger shopping project.
(English version by Loredana Fratila-Cristescu)