Developers and real estate investors reported land acquisitions with a cumulative value of about EUR 245 million in Bucharest in 2018, a new record of the last ten years.
There is a visible trend toward mixed projects, according to a report by real estate consultancy firm Cushman & Wakefield Echinox.
Compared to the previous year, the value of transactions involving land plots in Bucharest increased by 13%, amid a high interest on the part of the developers in the residential segment, but also due to the trading of large lots suitable for the development of mixed projects, according to the company. The report covered 31 medium and large transactions.
"The land market in Bucharest registered the third consecutive year of growth, but it is 60% below the 2007 level, the best year in terms of volume traded, with a total of about EUR 628 million," according to the press release.
"The land market in Bucharest is in a healthy growth phase, where prices are driven by detailed analysis of the pace of trading and the prices of properties that can be built on the land. Thus, the prices have stabilized, and recent transactions demonstrate that some plots are sold at 50-70% discount compared to their 2006-2008 prices. It is important that these lots are now traded at fair prices and can re-enter the real estate market because by their size they can radically change significant areas of the city," said Alexandru Mitrache, Head of Transactions - Land & Investment, Cushman & Wakefield Echinox.
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