(P) The New Luxury Standard in Real Estate
The high-end residential market in Bucharest is in full development, most of the projects that guarantee a luxury living experience being delivered in the centre and in the north. The definition of luxury is well known, but sustainability…
The high-end residential market in Bucharest is in full development, most of the projects that guarantee a luxury living experience being delivered in the centre and in the north. The definition of luxury is well known, but sustainability points out a new luxury standard, recently implemented on the Romanian market by developers who aim to deliver projects at international standards and to innovate.
The growth potential of the luxury housing segment remains high if we consider a statistic provided by Credit Suisse. In 2019, Romania had approximately 32,000 millionaires in US$, a number almost double compared to the previous year. Of these, approximately 1,700 people have a fortune between 5 and 10 million US$, and at the top of the hierarchy are 47 Romanian millionaires with fortunes between 50 and 100 million US$.
Nowadays, luxury apartments are one of the the most safe and stable investments, since this residential segment has proven to be better resilient to economic uncertainties.
Location, a key factor for luxury housing
Developers of luxury real estate projects prefer the centre of Bucharest for premium apartments, given the limited areas of land for construction and urban limitations. Things change as we move to the north of the city, and in areas such as Floreasca, Expoziției or Aviației are being developed luxury compounds with hundreds of apartments and premium facilities, thus giving more people the opportunity to a special lifestyle, with high standards, as close as possible to the desired destinations in the city.
The sale prices for the apartments in the mentioned areas are an indicator of the exclusivity for the locations. For example, the flats in Dorobanti - Floreasca area have an average selling price of 3,200 euro/sqm, excluding VAT. In 1 Mai area, the price is 1,900 euro/sqm, while the dwellings in Herăstrău-Nordului are sold for 2,750 euro/sqm and in Aviației, the flats are sold for 2,250 euro/sqm.
In locations such as Victoriei-Universitate and the Kiseleff-Aviatorilor, prices range between 3,000 and 4,500 euro/sqm, according to a report by JLL - real estate consulting firm. The statistics refer to transactions with properties that were developed after 2000.
In Expoziției area, the location has attracted many investments lately, with the profile of a real "Manhattan" of Bucharest. At this moment Impact Developer & Contractor is developing one of the biggest investments in the area - Luxuria Domenii Residence, meaning a residential compound containing 9 blocks with 630 apartments, built to an exceptional quality standard, that have prices between 91.890-720.000 euro
