The office building developers should be more cautious when it comes to buying plots for new projects, as the market currently has an oversupply that could put pressure on prices, said Liviu Tudor, president of Genesis Development, the biggest Romanian office building owner.
Companies expect the land prices to go up, based on the macroeconomic developments, but it’s better to first have an idea about what to build on those plots, Liviu Tudor added. The market’s vacancy rate stays at about 300,000 sqm, which means that there is oversupply.
“If we hurry to overdevelop an area we will put pressure on prices and we’ll get to a situation resembling the oil price situation,” he said , at a conference organized by Wall-street.ro.
Tudor’s group owns the office buildings Novo Park and West Park, which have 150,000 sqm of leasable office space. The buildings are currently fully let to multinational companies.