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15 February 2011

Colliers: Romanian land prices to stay within ranges

The prices of plots of land will no longer drop too much in the upcoming period and adjustments in the limit of negotiation margins of 15-20 per cent of the value asked by land owners will take place, a Colliers study reveals.

Prices continued to drop in 2010 although at a rhythm much lower than the one reported in 2009, transactions in Bucharest being closed at prices 15-30 per cent lower than those registered in 2009. The price drop was steeper in provincial cities, with the exception of those in which there are 2-3 dominant owners that control most of the quality offer and are not hard-pressed to sell, the aforementioned source informs.

The plots of land sold in Bucharest are predominantly destined for retail and office projects and secondarily for residential projects (individual villas or low-scale apartment projects) and medical sector projects. “Although apparently limited, the offer has grown richer in the past year.

Several owners affected by the economic drop have put plots of land up for sale in order to gain liquidities, while some banks have started to foreclose bad loans. An important source of new plots of land outside Bucharest consisted of various plants affected by the crisis, especially textile and furniture plants.

Retailers have expressed their interest in the case of such properties that had a central location and very good characteristics (regular shape, significant openness and a surface of 2.5 to 5 hectares) and the transactions came to fruition,” a Colliers communiqué reads. Last year the most active buyers were the ‘big box’ retail operators. Cora, Kaufland, Lidl, Penny Market and Dedeman conducted most transactions in 2010.

Newsalert delivered by Mirzon Group / Mirzon Investments/ Mirzon Groep / Mirzon Grup / Grupul Mirzon

Source: Nine O'Clock