Romanian Property News

Vitan Platinum Towers remains probably the most famous development currently undergoing in Bucharest. Generic information on the project was covered in a previous post but, due to the interest seen on this property, we’re coming back with further details.

The Vitan Platinum Towers project includes one 12-floor, one 16-floor, and two 14-floor buildings. The four buildings will be finalised in two stages – two of them will be ready in September next year and the other two will be finalised in March 2009.

The complex will include 300 apartments, either studio, 1-, 2-, or 3-bedroom flats, targeting the severely-ignored Romanian middle-class with a price tag of around €1000/sqm. According to an article from the 7plus Romanian website, the offer prices are:

• €49000 for a 45sqm studio flat
• €58000-124000 for 54-129sqm one-bedroom flats (don’t ask me, somehow they managed to stretch some of the one-bedroom flats to 129sqm…they must have very big lounges…).
• €100000-117000 for 94-109sqm two-bedroom flats
• €120000-140000 for 118-131sqm for three-bedroom flats

 The interest, as expected, is very high, as the price of the area is far higher and there is no doubt that any purchase of a flat in the complex will lead to a substantial profit when the project is finalised. Slight doubts therefore have started to appear amongst the public regarding the relatively low pricing of the flats. There are virtually no sites actually debating (i.e. not prasing) the price of flats in the complex and the reasons behind these prices, but I have spotted on a Romanian website a few comments regarding the clauses introduced by the developers. Apparently potential clients need to sign a “Bilateral agreement of selling and buying” (apologies for the direct translation, there probably is a better legal term for it) which states that the developer reserves its right to cancel the contract. Should this happen, the buyer will receive the initial payment (25% of the value of the property), plus a compensation payment of €2500. Things are rather different though if the buyer cancels the contract – in this case, the developer will return only a fifth of the 25% paid initially by the client.

It remains to be seen whether the situation is as fuzzy as described in the comments. A a generic conclusion, several people recommend the potential buyers to ask the help of a lawyer before signing the paperwork (although, as one of the comments noted, while the developers are happy to discuss and change some of the content of the contract, the above clauses are not subject to negotiation).

Last posts in Apartments

• Romfelt Plaza adds to the skyline of East Bucharest
• The Spring arrives in Western Bucharest in 2008
• Trident pinpoints south of Bucharest for affordable flats
• Otopeni Bridge comes close to both greenery and traffic
• Rental prices for studio flats in Bucharest – autumn 2007 statistics