Report: Five of Romania’s biggest cities attract more than EUR 2 bln in new real estate projects
Total investments of over EUR 2 billion are underway or will start soon in five of Romania’s largest cities - Timisoara, Cluj-Napoca, Brasov, Iasi and Constanta. Thus, commercial property projects totalling over 370,000 sqm, seven large hotels affiliated to international brands and more than 20,000 new apartments will be completed in the five cities and the adjacent regions between end-2021 and 2024, according to the Bucharest Real Estate Club (BREC) - Regional Cities report.
The analysis was performed based on BREC information from companies active on the market and CBRE, Cushman & Wakefield Echinox, Simon & Partners Cluj-Napoca, IMRA Real Estate Constanta and EST Hospitality data.
Timisoara tops the list, attracting investments of almost EUR 1 billion in office, retail and logistics projects of over 190,000 square meters, a 5-star Radisson Blu hotel and over 5,000 apartments to be delivered by 2024, according to the BREC analysis. Iulius Group is working here on one of the most important office projects, UBC 0, while AFI Europe added AFI Park Timisoara project to its portfolio last year. At the same time, large investors in logistics such as CTP, WDP, VGP and Global Vision are present with ongoing projects of over 115,000 sqm.
Meanwhile, Iasi accumulates investments in office and retail projects of over 65,000 sqm, plus more than 5,000 apartments in various compounds that will be completed by 2024. Iulius Group is working here on one of the largest local investments in the office segment, respectively 60,000 sqm at Palas Campus, as well as the Family Market retail parks in Miroslava and Bucium, a total investment of EUR 17 million.
Also, in the context of a high presence of foreign companies in this region, COS, the leader of the office fit-out market (design and arrangement for interior spaces), recently opened a new representative office in Iasi.
“The large logistics developers are still absent in Iasi, but two recent public investments - the Iasi Industrial Park and Miroslava Industrial Park - have catered for the demand on this segment,” BREC said.
On the other hand, Brasov is at the start of a new development stage due to the new international airport scheduled to open in 2022, the strategic location in the center of the country, and its tourism potential. According to the BREC analysis, the city has approximately 2,500 apartments under construction, over 45,000 sqm of office and logistics space under development, and three other hotels (Radisson, Ibis, Hilton) under various stages of preparation. One of the largest investors in the area is AFI Europe, which last year completed a EUR 148 million investment in the AFI Brasov mixed-use project and will begin construction of the second office building in the project (10,000 sqm) in the next period.
Cluj-Napoca and the surrounding areas attracted over 20,000 sqm of new logistics spaces, three new hotels (including a Radisson hotel and a hotel under the Courtyard by Marriott brand), and over 5,000 apartments in projects already started or scheduled to start in the next period, with completion deadlines between 2022-2024. One of the major investors in Cluj is Immofinanz, which owns the Vivo! Shopping center here, with an area of over 60,000 sqm.
Constanta, which has attracted investments mainly in the retail and logistics segments, also caught the attention of residential investors in recent years. More than 7,000 apartments are currently under construction or will be launched in the next period, including an investment of EUR 40 million in the second phase of the Gran Via Marina project of the Spanish developer Gran Via, which will complete 500 new apartments until 2024.
“The region has a high potential for logistics due to its location and available transport infrastructure. Also, the city could attract at least one major investment in the office segment in the near future, given that no iconic building has been developed so far,” BREC said.
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