Bucharest, December 20th, 2012 – In the past two months, the Land Agency of Colliers International Romania mediated the sale of three land plots located in Aviatiei area in Bucharest, at the aggregate value of 16 million euro.
“The area surrounding Aurel Vlaicu metro station in the Capital city of Romania entered strongly in the investors’ radars, with four deals closed only in the past two months, while other 2-3 land plots are in advanced negotiations. The land plots that were not subject to negotiations are challenged either by large bank loans or a significant gap between the price asked by the landlord and the level indicated by feasibility calculations of potential buyers”, states Sînziana Oprea, Senior Associate in the Land Agency of Colliers International Romania.
Taking into consideration the increasing office stock and massive pre-leasing activity in the area, Aviatiei benefits from increased interest especially on behalf of office developers. The trading activity of 2012 confirms this tendency – given the fact that 3 out of 4 land transactions closed in Aviaţiei region this year were intended for the development of new office buildings.
Not necessarily following the increasing demand, land prices in the area fell into a large interval, depending on the short and medium-term develoment potential, as well as the risk taken by the investor. Thus, land plots situated towards the main boulevard, in the proximity of the metro station, ideally located for future office developments, where sold for prices comprised between 750 and 900 euro/mp, while a land plot with a secondary position was acquired for a future residential development at cca 100 euro/mp.
As a general tendency on the land market in 2012, the average lenght of a deal became strictly dependent on the PUZ and, in some cases, on the Building Permit.
“On one hand, we managed to close a deal involving a land plot that had all necessary authorizations (PUZ and Building Permit) in less than 3 weeks. On the other hand, in the case of a land plot with a pending PUZ, the duration of the deal was prolongued with up to 18 months. From this point of view, 2012 was the most difficult, unstable and unpredictable year in history, taking into account the fact that changes on the political scene overturned the agenda of Bucharest’s General Council, postponing for more than half a year the closing of many transactions”, explains the consultant.