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All agree that joining the EU has been the main catalyst for growth, lending more credibility to the country and attracting investors who see the returns on their home investments grow stagnant.  Romania's vast agricultural land surfaces are also the focus of much interest - and some believe there could be staggering price increases of up to 40 percent this year if foreign developers continue to swoop.
Prices for land with development potential could increase by 20 percent to 25 percent this year. The market matured during last year. Transactions were done in a more and more professional manner with exclusivity sales contracts and complete and correct documentation with respect to the property of the land. The major developers made their decisions based on more careful market analyses. Another surprise was the speculative buying / selling decline. Demand was high and, aside from a large number of smaller deals, it also counted large transactions of over 10,000 sqm within the city limits. The interest for residential development prevailed, with developers trying to secure easily accessible plots in secondary locations, i.e. traditional residential neighbourhoods. Prices have continued their rise, but at a more alert pace in the first half of the year compared to its second half. Sellers got used to bank transfers instead of the cash transactions which were regular a few years ago. Demand continued to outstrip supply. The supply of land suitable for Class A buildings is almost close to nil; consequently, developers are now looking for options to build Class B and B+ premises. Prices have grown differently in most of the areas of Bucharest . The highest growth rate was registered in the Pipera area where we can still register speculative transactions. Plots of land, suitable for Class A developments and located in the central and northern parts of the city have been sold for record prices, exceeding EUR2500/sqm and EUR 4500/sqm. Hence we notice a stagnation of the price increase because the high prices became prohibitive for developers who could no longer make the same profits as they were used during the last years. Less growth was registered in the South of the town; therefore more and more developers look for locations in this area for residential construction. Land suitable for retail is still in high demand, although there are many projects in view. The prices have increased in such a way that retail developers are obliged to look for big plots outside Bucharest .  Large plots of land will continue to be sought after; the residential segment targeting the middle class is just beginning to develop, while the retail and office markets show strong signs of consolidated evolution. We do not expect significant changes as far as demand is concerned. Supply will not see major improvement, as it depends entirely upon the re-conversion of old factories and infrastructure upgrading.
Most growth in value is expected in the surroundings of Bucharest . The removal of land from the agricultural circuit has been facilitated and rendered less expensive. In this sector prices went up in certain areas by 100%. Prices of land surrounding the villages which are near the future highway to Brasov are about to increase every day. We expect this year an increase of at least 60% for such locations. An agricultural plot which is taken out of the agricultural circuit almost doubles the price. There are many projects of rezoning of such plots. After change in constructible land those plots are divided into smaller surfaces and sold on a retail basis to the local market. Such a transaction can show an additional increase in value of at about 80% in one year, the time which is necessary to go through all the rezoning procedures. Agricultural land We specialize in marketing and brokerage of large assets and atypical land transactions as well as implementation of projects requiring agricultural expertise. One of our partners is specialized in guiding investors in farms and agricultural operations to obtains EU non-returnable subsidies.
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