Romanian Property News

…but you might be a bit short for cash when it comes to the bill. The latest land transaction in Bucharest managed to hit a new record for the amount paid for the acquisition: 53 million euros.

So, what does 53 million euros gets you these days in Bucharest? According to the online version of the Atac Online newspaper, an Irish company paid this record sum for an 83000 sqm plot in the Titan area in Bucharest. Compared to other projects, although not negligible in size, we can’t even talk about a mammoth one: the company plans to build a total of 1000 flats, as well as a 20000 sqm shopping mall. Further, if you do the maths, it comes to 638€/sqm, which is not too bad; however, we’re also talking about a large plot, rather than a single-house, 500sqm footprint.

The land is no longer just a mere part of an investment in Bucharest. The total development costs for the entire project due to be built, including both the residential and the commercial buildings, will cost 120 million euros according to the plans. That makes the land worth just over 44% of the development costs; even if you put the two costs together, to evaluate the overall price, the land will still cost 30% of the total amount.


To put things in perspective, according to statistics produced by a south-african property website, the percentage varies considerably throughout the world. In South Africa, between 10-15% of the cost of a new development is needed for the land investment; the figure raises to 20% for Canada, 40% for Australia, and reaches 50% only in London. It’s either the world’s going mad or property in Bucharest might be worth quite a bit…

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