At least twelve of the housing projects announced on the domestic market so far include blocks with heights starting from 14 storeys and going as high as 24 storeys, as is the case of Asmita Gardens or Romfelt Plaza projects.
It is largely land prices, pushing projects to upper development levels, that are lying behind real estate developers' announcements presenting penthouses and duplexes at storeys with "dazzling" views.
"We can speak of a vicious circle: developers are pressuring for increasingly taller buildings, blaming the high land prices, while land owners are raising prices because they are aware somebody will pay and get the necessary urban planning parameters allowing for land price amortisation," state the representatives of Euroest real estate consultancy.
The twelve projects included in the analysis comprise a total of 9,000 apartments that, except for Neocity Peninsula and West Park, developed in several stages, will be delivered in the next two years.
Considering land prices could continue to rise further in the following years, according to real estate consultants, the number of projects due to include tower blocks will increase.
"It's clear that in the future developers will propose an increasing number of projects with taller and taller buildings, but ideally they should not be authorised for land prices not to climb unreasonably," adds Euroest representative.
Complexes including tower blocks are particularly located in secondary areas of Bucharest, but also in central areas of the city.
Despite the rising weight land costs have in the final sale prices of homes, developers' yields have remained unchanged, at at least 30%, amid the steep increase in apartment trading values.
"A tower block project is easier to manage in terms of costs, offers better yields and is easier to manage overall.
"At the same time, this type of projects entail easy planning, since a series of repeating operations are involved," states Sorin Lacusta, manager of the housing department of Regatta real estate consultancy.
There is also a downside to such developments and that is the creation of a large number of parking spots on a limited area and to the need to lay some large foundations.
Still, real estate investors' plans show the city will be further developed vertically.
Also taking housing projects into account, we could have around 100 new buildings of at least 14 storeys in Bucharest in the next three years. Localities surrounding Bucharest will also embark upon vertical development, consider some consultants.
At present, housing complexes started around Bucharest are made up of villas or blocks with a low height regime, such as Corbeanca Forest villa complex or Residenz complex of Chitila.
Apartment towers
At least 12 twelve of the housing projects announced on the domestic market so far include blocks with heights starting from 14 storeys and going as high as 24 storeys
It is largely land prices that are pushing for vertical development
Considering land prices could rise further in the following years, according to real estate consultants, the number of projects due to include tower blocks will increase
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