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Colliers: Romanian Land Prices To Stay Within Ranges

Postat la: 14.02.2011 15:06 Ultima actualizare: 14.02.2011 15:07

Romanian land prices should not decrease greatly in the near future, and adjustments should fit within negotiation margins, real estate consultancy firm Colliers said Monday.

"We do not expect prices to decrease greatly in the near future, and there should only be some minor adjustments, within negotiation margins, namely 15-20% of the asking price," said Mihai Bogza, associate director of the land department within Colliers International.

Prices continued to decrease in 2010, although at a lower pace compared to 2009. In Bucharest, transactions were concluded at prices 15%-30% lower than in 2009. In other Romanian cities, the prices dropped more visibly, except in areas where two or three owners dominate the market.

Lots sold in Bucharest are mainly bought for retail development and offices, followed by residential projects and medical projects.

Demand in 2010 came mostly from end-users, while speculative investments were sporadic. The most active buyers were big box retail operators, who targeted other large Romanian cities as well, especially those with more than 50,000 residents. Cora, Kaufland, Lidl, Penny Market and Dedeman concluded the most transactions last year, according to Colliers data. (mediafax)

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