RESIDENTIAL
Bucharest is the most accessible capital for renters in Eastern Europe, while Romania ranks 13th out of 31 European countries (the 27 EU member states, plus Great Britain, Norway, Switzerland and Iceland) in this regard, according to the latest data from Storia, the real estate platform of OLX. With an average net salary of around 1040 euros per month and an average rent for a studio located outside the central areas of the urban environment of 302 euros, the city of Bucharest has a rent affordability index of 0.29 a value that ranks the country in 13th place among the 31 countries included in this analysis. The lower the index value, the more affordable the rents. Data compiled by Eurostat showed that rents have increased by 34% in Romania over the past five years.
RETAIL
In H1 2024, deliveries of new retail spaces in Romania totaled 87,400 square meters, up from 30,000 square meters completed in the same period a year ago, amid development activity in Q2 2024 according to Cushman & Wakefield Echinox Research. Projects with a cumulative area of 78,100 sq. m were delivered in Q2 2024, an impressive growth compared with the previous quarter (9,300 sq. m) and also with Q2 2023 (17,000 sq. m). Romania’s total modern retail stock was of 4.54 million sq. m at the end of H1, out of which 55% consisted of shopping centers. Retail parks and commercial galleries accounted for 45%. Looking ahead, projects cumulating around 155,000 sq. m are due to be delivered by the end of 2024 as developers continue to invest in new projects to support the retailers’ expansion plans.
MIXED-USE
Bucharest-listed One United Properties (BVB: ONE), the leading green investor and developer of residential, mixed-use, and office real estate in Romania, is currently carrying out restoration works on the former Ford Hall which was built in 1935 for the Ford car factory. Located in the Floreasca area of the Romanian capital, the historic building will be modernized into a sustainable mixed-use space. After restoration, it will open under the name One Gallery and will include, in addition to modern offices and a unique food market concept, a museum dedicated to former Ford plant, which was the first Ford factory with an operational assembly line in Eastern Europe. The gross development value for One Gallery is currently estimated at EUR 100 million, the largest private investment in Romania in the restoration of a historic building. The estimated delivery date of the restored building is the third quarter of 2025.
CONSTRUCTION
Austria-based construction company STRABAG which has been active on the Romanian market since 1991 has been selected by PPF Real Estate as the general contractor for the construction of the developer and investor’s new office building, named “The ARC”. The new ten-floor class A office building will contain 30,000 sqm of modern office space. The Arc will be located near the Basarab metro station in a commercially developed area in the 6th District of Bucharest, setting new standards for office spaces in the area. Construction is scheduled for completion in 2026.
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