Page 32 - bne_Magazine_May_2018_print

32 I Special report bne May 2018
Infrastructure investments create
new real estate hubs in Bucharest
“This is the first area that began modern development after the fall of commu- nism in Romania – partly because of its positioning near Primaverii, Herastrau and Aviatieie residential neighbour- hoods, well known since before 1989
as high-end areas where most of the elites of the previous regime lived and where most of the former embassies and diplomatic missions had headquarters,” Ponomarenco tells bne IntelliNews.
“Another reason for which the area
was preferred by the investors was the extended surface of free land, accessible at low prices after the 1990s, suitable for large office and retail developments.”
New hubs emerge
While the northern metropolitan area is “still preferred by AAA tenants”, accord- ing to Ponomarenco, several new hubs have emerged in recent years. Verdant north Bucharest is not currently well served by the country’s metro lines, meaning streets within the district and (even more so) those leading to and from the city centre, tend to be highly congested in rush hour. This has led to the emergence of new hubs typically close to newly opened – or imminent – transport infrastructure.
The Mark emerges among ramshackle housing near Bucharest's main railway station. The class A office building is under construction on Uranus Boule- vard, which was completed in 2014.
“Large institutional investors have not made major shifts in marking their areas of interest. NEPI and Globalworth, the largest asset owners in Romania, are mainly active in the northern part of Bucharest,” says Ponomarenco. How-
BRICKS & MORTAR:
Clare Nuttal in Bucharest
Since before the collapse of com- munism, northern Bucharest has been the most popular area of the Romanian capital for developers, but as the city becomes increasingly congested, rival hubs are springing up in districts opened up by the construction of new metro lines and other infrastructure investments.
Demand for new office, retail and resi- dential space is growing fast as Roma- nia’s economy booms – it outstripped China with 6.9% growth last year and while this is set to moderate, Romania is forecast by the International Monetary Fund to expand by a still healthy 5.1% this year.
Leading the charge for quality office space are the multinationals that have flocked to the city in recent years.
Aside from those in the fast growing
IT sector, there are also a mixed bag including Amazon, fast food chain Taco Bell, packaging company DS Smith and fashion retailer Forever 21, says Despina Ponomarenco, executive director of
www.bne.eu
the Romanian Real Estate Club which represents developers. She says no less than 200 large international companies entered Romania in the last two years alone, and anticipates that “more are expected to follow into a very dynamic local real estate market”.
Northern metropolitan Bucharest remains the prime location for develop- ers, with no less than €1bn worth of investments currently being made in the area, according to the Romanian Real Estate Club. These include office proj- ects by NEPI Rockcastle, One United and
"Demand for new office, retail and residential space is growing fast as Romania’s economy booms"
Skanska, numerous residential projects adding up to over 5,000 apartments, as well as the new Metropolitan Hospital and a Courtyard by Marriott hotel.
ever, she adds that, “Shifts have been indeed registered in area preferences though, because of workforce prefer- ences in the last two to three years.”