Price of land in Otopeni - evolution of sale prices between 2005-2007
Otopeni is one of the areas that took full advantage of the recent real estate expansion nearby Bucharest. Through its position, the village/town is part of the attractive area North of Bucharest and has direct access to the National Road 1 – DN1.
To begin with, the town is probably one of the largest ones nearby Bucharest and has plenty of room for further expansion. While initially the residential area was shallowly linked to the main road, Otopeni now spreads wide for miles, as more people purchased land to build their houses. As most of the recent acquisitions are in early stages, a significant portion of the (still) available land for sale in Otopeni might not come with utilities, but the substantial pressure from the future inhabitants virtually guarantees this is only a temporary problem.
Over to the subject of this post – the price of land in Otopeni was heavily influenced by the increasing interest for housing, typically from small investors. The graph below shows the variation of offer price between February 2005 – February 2007.
The data behind the graph includes more than 250 offers from the above period for plots with a surface between 1000-10000sqm (more data is available, but a considerable part of it is hard to interpret, as it includes multiple plots or gives unclear pricing information). So apologies to the large investors reading this post - you will have to do your own research. Joke aside, larger plot offers tended to have either lower prices, biasing the averages, or no price at all – inviting the potential investors to negotiate. Similarly, some of the small plots had very high prices, due to their position. As a rule of thumb, you can add/subtract 30-50% for smaller/larger plots, compared to the graph prices.
As it can be seen in the above graph, the average price of land in Otopeni increased from an average of €58/sqm back in early days of 2005 to €123/sqm in February 2007 – resulting growth in price: 212%. The evolution shows a constant increase, with a slight jump in January 2007, likely to be due to the EU integration.
Being positioned on the busiest road in Romania – DN1 – Otopeni is of interest not only for residential reasons but also for commercial reasons. The town is therefore strangely half-populated with show-rooms and supermarkets from the before-residential-boom era; such developments now either transform, from show-rooms to business centres, or relocate altogether to take advantage of the increases in land price in the area. Therefore, further plots might appear in the near future in very good locations, but also with a high price tag.
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Posted: March 18th, 2007 under Land, Reviews.
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