The activity in the land market has slowed down over the past year, but investors' enthusiasm regarding Romania's long-term potential remains stable.

The demand for strategically considered lands, available at more advantageous prices than in a highly active market, is increasing, noted Colliers consultants, and this trend is attracting the attention of major developers looking to strengthen their position in the real estate market.

A recent example is Genesis Property, one of the most important owners, developers, and operators of Class A office buildings, which completed the acquisition of three land plots totaling 30,000 square meters from Stizo Invest, in a transaction mediated by Colliers.

Thus, Genesis Property is consolidating its position in the Western area of Bucharest, where it already owns the West Gate Business District office buildings and the West Gate student complex.

Among the active land buyers are One United, Speedwell, and Kaufland, and it's noteworthy, as a novelty compared to previous years, that the Romanian state is also quite an active buyer, through various entities, securing certain strategic platforms in major cities.

"The trend of increasing supply continues because new properties constantly appear on the market, and the demand is represented by a rather small number of potential investors. However, the year started well, with large transactions announced, in various stages of completion.

We observe portfolio sales, such as Rocar and Iride from CPI / Immofinanz, but also other portfolios, mostly consisting of residential land, from players who have too large a stock and need to unlock or focus on certain projects in an advanced stage," explains Sânciana Oprea, Land Agency Director at Colliers Romania.

Furthermore, the Colliers director expects other valuable land portfolios to be brought to the market soon. Interest in the retail and residential sectors continues to be solid, but it is particularly focused on mixed projects, which involve securing well-located platforms at competitive prices or in attractive structures, at this time.

Prices remain relatively stable, with no significant fluctuations observed, but there is an increase in availability from owners who feel a more urgent need to sell.

Last year, the volume of transactions with land for commercial real estate projects (excluding industrial and traditional warehouse ones) decreased by less than 10% compared to the 2022 level, of 450 million euros, and continues to be considerably above the pre-pandemic level, as shown in the annual report published by Colliers.

Approximately 70% of the traded lands come from Bucharest and its surroundings. Specifically analyzing the volume from Bucharest, Colliers consultants noted that half was generated by lands designated for residential use, a quarter from the retail area, and the rest from various types of investors (office developers, institutions from the educational and medical sectors), or simply speculative buyers.

In the rest of the country, residential represented about half of the volumes, with retail representing the majority of the difference up to 100%. It should be emphasized that transactions with land for retail purposes have decreased compared to previous years. (Photo: Freepik)