Romanian Property News

Still interested to buy land in Bucharest? Worried that you are too late in the game?
Worried that the prices massively increased? According to a review from the Money Channel, you should focus on the south west of the capital. If the north of the capital has been heavily developed and the price of land went up as high as hundreds of euros per square meter (in the sought-after, posh…and rather crowded by now area of Baneasa), there is still room for great returns on investments in the south of Bucharest.

Yes, you can still find plots of land at a decent price in regions between Bucharest and Adunatii Copaceni in the south or towards Bolintin in the West. As a side issue, the people from Bolintin are famous builders, so you might even get a better price for the construction price. The actual price tag varies depending on presence or lack of utilities; how far is from the city centre; and the potential offered by the region in terms of shopping-malls and office buildings. While you might want to think about the third category, worry less about the second criteria, and definitely do not be concerned about the lack of utilities. Yes, you might have to wait until the next round of local elections, when the current mayor will do all necessary investment to be re-elected, but it is only a matter of time until having your plot linked to electricity, water, and gas.

According to the same article from the Money Channel magazine, land prices in the west of Bucharest recorded a 50-70% increase over the last year; during the past two years, the average value of land plots for the Bucharest centre area increased in the range of 50-400%. Why south-west in particular? Because the link to Giurgiu is still weak, used typically for transit to Bulgaria, and less for actual developments, so there is still room for bargains. Currently, prices in the west of Bucharest range between €70 and €80/sqm where in the south of Bucharest the prices are between €20-80/sqm (for small plots) and €350-850/sqm for large plots involving big developments (yes, strangely, you can find cheaper prices for some of the smaller plots, as they cannot be used for larger projects but only for individual housing developments).

When deciding on your preferred location, it is also relevant to find out what happens around Bucharest. Here is a brief overview, based on the current undergoing projects:

• The north is focused on office spaces (for major international companies) and exclusive residential developments (individual or part of a larger development project)
• The south attracts industrial companies, interested to set up their manufacturing and production facilities- heavy industry. Although initially pushed out of Bucharest, like in the case of Sema Park, the industry still needs to locate itself nearby the capital…and the area of choice appears to be the south
• The west is mainly thought after for its light industry, logistics and warehouses. This is where smaller projects may appear, including cheaper residential plots.

As a final comment, beware of speculative prices. Do not go with the first offer, always look around, as the price is starting to become volatile in this area. Therefore, we are likely to see price variations similar to the ones that the north of Bucharest witnessed a few years ago.

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