Eduard Bogdan Desliu, country manager of Premiumred, the real estate arm of Volksbank, believes the fact that the Romanian market is not witnessing a fast growth is a good thing in comparison with the situation in Germany, where since reunification, too many buildings have been erected and a lack of tenants has caused a market collapse.
On the other hand, in Romania, the investors put pressure on the market in a bid to purchase projects at higher yields compared with those on the Western European markets, meaning, however, that the number of projects currently available for sale is quite low.
"The pressure put on the market is so heavy because there are many investors interested in buying, but only a few products available. It is good that things are not going as fast as they did in Germany, where too many buildings were constructed and a shortage of tenants caused the collapse of the market," said Desliu, general manager of Premiumred.
Desliu, who is an architect, has been working with the group since last summer, before which he lived in Germany for 40 years. The group's first two projects are being developed in the Piata Victoriei area, where Premiumred is erecting two office buildings that entail a total investment worth some 35 million euros.
"Piata Victoriei is a very valuable site because of the Buzesti, Dr. Felix and Nicolae Titulescu streets. It is located next to the emerging northern region of Bucharest but is still in the heart of the city; having access to the underground as well as to other means of transportation and is located close to the railway station. An attractive office and residential area could be built on the land between Piata Victoriei and Gara de Nord (North Railway Station)," says the Premiumred representative.
Apart from Premiumred, the Volksbank group also holds the investment fund Europolis as well as Immoconsult, a company whose portfolio comprises two office buildings, the Baneasa Business Center and also the Budisteanu Business Center.
"Immoconsult has been operating on the domestic market for many years and it anticipated this growth. The Volksbank group entered the real estate market when a great deal of companies operating in the same field in Germany, did not have the courage to become involved," says Desliu, who believes Romania's accession to NATO was the first signal that gave confidence to foreign developers.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
