Land owners in Stefanestii de Jos (North Bucharest) are currently asking for 90 euros/ square metre, after several residential projects have been developed in the area.
"Last year, a square metre of land cost 30-35 euros in Stefanesti. Lately, I've heard of a four-hectare plot on the other side of the lake, for which the owner is asking 90 euros/square metre, whilst in the area close to the ring road, there are owners asking for as much as 200-250 euros/square metre," said Murat Kavurga, CEO of Opus Land Development, the developer of the Cosmopolis project.
Cosmopolis is one of the largest residential projects that is being developed in several stages in Bucharest, and will eventually entail around 4,700 homes, spread across 100-hectare areas.
Currently, Stefanesti is highly attractive for developers, and over 10,000 new homes have been announced in the medium run. Construction works started in September last year and works on the foundations and first few floors have been completed (for buildings developed in the project's first stage), whilst the deadline stands at September 2009.
All homes in this first stage (565) have been sold, whilst company representatives have started sales for the second stage (around 600 homes have already been sold).
"Two investors, one from Canada, and one from the UK purchased around 24% of homes, with the rest being acquired by individuals. The construction works are going well, and we hope to deliver the first stage before the deadline," added the Opus representative. Homes built in the first stage were sold at an average price of 1,040 euros/built square metre (plus VAT) whilst sales for the second stage started from 1,175 euros/square metre, and will approach 1,250 euros/square metre in the coming period.
"We are currently offering promotional prices, so our profit is below 30% for the first stages of the project," said Kavurga, who specified that the sum invested so far in construction works stands at 17 million euros.
The entire project entails investments estimated at 700 million euros, with the first stage being partly funded through a loan taken out from GarantiBank.
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