The programme that entails the elimination of plants located within Bucharest is coming to a close. Republica, Titan Mar and Timpuri Noi are among the last "redoubts" in the way of real estate developers, who will have to match high asking prices if they want to include them in their portfolios.
"Within Bucharest there are very few large land plots left suitable for real estate developments. A large part of the former plants have been already sold, while others, such as Vulcan, haven't been put up for sale, yet," states Laurentiu Badea, a senior broker at the land plot department of Eurisko real estate consultancy.
A significant number of plants in Bucharest, such as Laromet, Tricodava, Helitube, Electroaparataj and Compania Industriala Grivita, were sold last year, which means that there are very few large land plots still available in Bucharest.
As a result, developers targeting the capital this year have limited options in terms of large plot acquisitions, such as the land on which the former Republica plant stood or the land of Timpuri Noi and Titan Mar, with the sale processes in their cases being in an advanced stage.
"Large investment funds that target the development of office buildings or housing complexes will generally head toward other cities because one cannot build offices in Tunari for instance," considers Badea.
However, there still are some large land plots in Bucharest considering consultancies' announcements. For example, Euroest agency website presents 4 large land plots with a total asking price of 200m euros.
One of the largest land plots available in Bucharest is the area on which Republica plant, in eastern Bucharest, once stood, which covers 24 hectares and is due to be put up for sale this spring.
Asking prices are almost double the value of last year's deals, considering Africa Israel paid 500 euros/square metre in the deal in which it took over the land that belonged to Laromet plant.
Other land plots that are expected to be taken over by real estate developers are Titan Mar (60,000 square metres), Timpuri Noi (50,000 square metres) and Victoria (18,000 square metres). Asking prices revolve around 2,000 euros/sqm, which means that prices could reach 250m euros.
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