Land prices in the Capital not to climb by more than 20%Publish date: 09-01-2008
Land prices will continue to grow in 2008, as well, but not by more than 20%, real estate analysts say, considering that they reached a maximum level in many area of the Capital, already being at the level of other European capitals, or even higher.
According to real estate analysts, in 10 years, land price in the Pipera-Tunari area increased up to 200 times, from five dollars per sq.m. to 1000 euros/sq.m. Similarly, in certain areas of the Primaverii district, the price of a square metre of land may even reach 5000 euros/sq.m.
In the West of the capital, the price of a square metre of land is 500-1000 euros for offices, residential and retail and 50-80 for the industrial segment, while in the South of Bucharest price brackets are between 400-800 euros/sq.m. for the residential and office segment.
"For the land segment of real estate, 2007 represented a significant boost, especially in Bucharest's south area, where prices grew even by 50%. In the other areas of Bucharest, prices went up by 15-20% at the most. In the country, the increase of the square metre price was also determined by the fact that very many investors announced their targets for 2008", said Mihai Alexandru, consultant of the al Cushman & Wakefield Activ Consulting department of lands.
Representatives of the Eurisko company say that if prices climb even more in 2008, they will no longer be attractive for developers. 'Land price in Bucharest has already reached its maximum, being at the level existent in other European countries, or even higher. If prices climb even more, the lands will no longer be attractive for developers. Many of them have already started to be quite reticent when it comes to buying a lot of land and think well whether the investment and especially the profit are satisfactory", said the Eurisko people.
EuroMetropola real estate analysts say that 2008 will see the intensification of the investors' tendency to migrate towards the limitrophe areas of the Capital, as a result of the increase in the price of lands with insufficient areas inside the city. "Nevertheless, inside the city, the investors will continue to struggle for the former industrial platforms that, due to their large areas, are fit for the development of residential ensembles or mixed residential-office-retail projects", declared Monica Marin, Partner Manager at EuroMetropola.
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