Colliers: 2021, the best year in the last 15 for the Romanian land market
The volume of transactions with land dedicated exclusively for residential and commercial projects (office, retail, hotel) saw last year its highest value since 2007: EUR 800 mln, according to real estate consultancy firm Colliers.
The market has increased more than 2.5 times compared to the estimated volume of EUR 310 mln in 2020, according to the company’s estimates.
Retailers and residential developers have been extremely active, with the land for such projects accounting for about 90% of the total.
The capital city attracted three quarters of the nominal transaction volume, namely over EUR 600 mln. About 70% of transactions in Bucharest are for residential projects, Colliers consultants estimate. But there are many transactions involving large platforms for mixed-use projects where the share allocated by developers to various sectors is not completely sure.
By comparison, in 2007 - the beat year of Romania’s real estate market so far, Bucharest alone saw transactions of more than EUR 800 mln, and at the national level, the EUR 1 bln threshold was exceeded, according to estimates at that time.
“The prospects for 2022 are good, but a bit more subdued. Following a year that has been just as active as two normal ones, it will take some time for the market to absorb the pipeline of real estate projects, especially in the residential sector. Moreover, in Bucharest and other areas of the country, there are some blockages or delays in the permitting process, which can lengthen the entire acquisition process and the delivery of projects. Therefore, we expect a significant market volume for 2022, albeit below 2021 level, and a quasi-stagnation of prices, though exceptional land plots in a great position and benefiting from approved urban planning documents can attract better offers,” concludes Sînziana Oprea, director of the Land Agency at Colliers.