The most expensive land plots in Bucharest are located in the Primaverii area, where the price can easily exceed 3,000 euros/sqm. At the other end of the real estate spectrum are areas such as Ferentari and Rahova, where the average price revolves around 150-200 euros/sqm, according to experts of real estate consultant Eurisko.
Despite the low prices, potential buyers avoid Ferentari and Rahova, because those investing in residential complexes, apartment buildings and commercial centers will not target areas that house low-income households.
"Our biggest transactions in Primaverii were at a price of 2,500 euros/sqm, although we did have offers of 3,000 euros/sqm in the same area," said Laurentiu Badea, Senior Broker with Eurisko's land & investments department.
"We did not conduct such transactions ourselves, but we did hear of land being sold for as much as 3,500 euros/sqm in Primaverii," stated Attila Peri, Senior Broker with the land department of real estate company Colliers.
The steepest price hikes since the beginning of 2005 have been recorded in Bucharest's eastern area, near the motorway to Constanta, but the volume of transactions in this particular area is still rather small.
In the area encompassed by Policolor and the beginning of the highway, prices even grew by 100%, to 200 euros/sqm, according to Eurisko representatives.
"In the next three years, the area located between Policolor and the roundabout that marks the beginning of Autostrada Soarelui (Sun Motorway) will see significant changes, as it will witness the emergence of commercial centers, hotels and petrol stations. Moreover, the area has significant potential for the development of logistic spaces," said the Eurisko official.
Most transactions with land take place in the Pipera area (northern Bucharest), the zone near national road DN1 Bucharest-Ploiesti, Soseaua Progresului (Progresului Road) and Semanatoarea, according to real estate companies Colliers and Eurisko. Prices for land in Pipera and Progresului have jumped more than 50% since 2005.
Following the European Union accession, the Bucharest land market may post a slight short-term growth, until the direct impact of accession on the economy is gauged.
"The land market is tightly related to the general economic trends," says Attila Peri.
The most expensive areas in Bucharest also include Kiseleff, Herastrau and Floreasca, where prices range between 1,500 and 2,000 euros/sqm.
"The price per square metre is losing some of its significance, as long as you can buy a particular plot and build a four or five-floor building, with a useful surface area that is three times bigger, thus enabling the investor to derive a hefty profit," Badea feels.
The Pipera area, which was preferred for residential buildings until last year, has seen an office building boom, as well. In the past year, big projects such as the Twin Towers Barba Center and the North Gate Business Center have been unveiled, with cumulate values exceeding 100 million euros.
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