The volume of transactions with land for commercial real estate projects (excluding industrial and traditional warehouse projects) has decreased by less than 10% compared to the 2022 level of 450 million euros and continues to remain considerably above the pre-pandemic level, according to Colliers' estimates.

"The beginning of the year and the last months of 2023 have significantly contributed to the positive result, as the activity slowed down in the second and third quarters. The performance is very good, considering the challenges in certain areas of the commercial real estate market, amid construction costs higher than a few years ago," concludes Sânziana Oprea, Land Agency Director at Colliers Romania, who also expects a good 2024, considering both investor interest and the current volume of transactions in progress.

Colliers' estimates include only transactions for commercial real estate projects, excluding industrial and energy projects. The year 2023 started more slowly than the previous years and largely marked the closing of some long-standing transactions.

However, investors became more active in the last part of the year, as some sought to close transactions in the current fiscal year for tax reasons, while others may have aimed to streamline cash flow.

New demand for land was lower than in previous years, so last year's result was supported by some significant transactions that had been in progress for a long time and were ultimately closed.

Approximately 70% of the traded land comes from Bucharest and its surroundings. Analyzing the volume specifically from Bucharest, Colliers consultants noted that half of it was generated by residential land, a quarter from the retail area, and the rest from various types of investors (office developers, educational and medical institutions) or simply speculative buyers.

In the rest of the country, residential represented about half of the volume, with retail accounting for most of the difference up to 100%. It should be emphasized that land transactions for retail were down compared to previous years.

The most active buyers were One United, Speedwell, and Kaufland, but it is noteworthy, as a novelty compared to previous years, that another quite active buyer was the Romanian state, through various entities, which secured certain strategic platforms in major cities such as Brasov, Sibiu, Iasi.

Colliers believes that the appetite remains lower than in the period 2021-2023, but this fluctuation is far from dramatic.

Moreover, some major transactions are in various stages of due diligence and could be concluded in 2024, which could lead to another good year once the year-end is summed up.