The fifteen largest unused plots in downtown Bucharest have a cumulated surface of nearly 34 hectares and their value amounts to at least half a billion euros, according to ZF’s estimates.
Local businessmen George Copos, Ion Tiriac, Gabriel Popoviciu or Sorin Creteanu, as well as the family of the former owner of the Petroexportimport business, Ovidiu Popescu, who owns the Stirbei Palace and the 8,000 sqm land behind the palace, are among the owners of the fifteen empty plots.
Also, other plots were bought by foreign investment funds like Global Finance (Greece), Portland Trust (Great Britain), Interprime Properties (Sweden) or CA Immo (Austria), which plan to develop on these plots mainly office buildings.
The largest plots in downtown Bucharest, namely, the Esplanada platform stretching onto 10.7 hectares along the Unirii Boulevard, and the 9.2 hectare plot behind the Casa Radio, in the Eroilor area, were to be developed in public-private partnership by companies TriGranit and Plaza Centers, but the economic crisis and various litigations have turned these projects upside down.
What’s the price of plots?
In the central area – stretching from the Unirii Square to the Free Press Square – property prices range from nearly EUR1,000/square meter, while smaller plots in the Romana Square or in Primaverii residential area were sold at over EUR5,000/square meter in the realty boom period.
A price indicator for the past year was set for the area near the Basarab passageway, where Swedish investment fund Interprime Properties paid EUR13 million for a 2 hectare plot, namely EUR650/square meter.
Over one year ago, at the crossroads of the Barbu Vacarescu Boulevard and the Soseaua Pipera roadway, British Portland Trust paid nearly EUR10 million, the equivalent of EUR500/square meter, for a 2 hectare plot bought from local businessman George Becali.
What’s built on these plots?
Most of these plots will be used for the construction of office buildings, while the Esplanada and the Dambovita Center (Casa Radio) projects also targeted the construction of shopping malls and residential complexes.
The realty projects likely to set off this year include, among others, the Floreasca Business Park, a first office building at the Dambovita Center or a business center located at the crossroads of the Buzesti street and the Calea Grivitei roadway, developed by the company S IMMO, owner of the Sun Plaza shopping mall in Bucharest.
However, most of the investors in these realty projects further rely on bank loans and pre-lease contracts, which are difficult to obtain now, including by the owners of plots in downtown Bucharest.
(English version by Ecaterina Craciun)