The real estate market in Bucharest and the rest of Romania registered an impressive growth in 2014, despite what some specialists predicted as another year of stagnation. The new optimism found in the market has led to investors reconsidering or restarting projects which were flat-lined when the financial crisis hit the country in 2008 and 2009.
The Spanish developer Hercesa for example has announced it will restart investments in the Vivenda Residencias project located in the eastern part of Bucharest. This would mark the third part of the project and will mean that work should begin on 66 apartments consisting of 2, 3 and 4 bedrooms.
The project was started back in 2007, with 420 apartments being built and sold in the meantime. The Spanish company announced a new stage in the project, with work scheduled to begin sometime between August and September 2015. This new phase would have 2, 3 or 4 bedroom apartments with no studios and will consist in 66 units.
Hercesa has already announced the price range for the new Vivenda Residencias apartments. They start at 55.400 euros without VAT for 2 roomed apartments with 46 usable square meters. A price of 83.000 euros without VAT will be asked for 3 room apartments with a surface of 74 usable square meters. The site is situated in the Eastern part of the city on Basarabia Boulevard. When completed, the Vivenda Residencias project should offer 1.400 high-end apartments, dedicated to middle and upper class income individuals.
According to market analysis, Hercesa came onto the Romanian real-estate market back in 2004. It is estimated that since then the Spanish developers have spent over 150 million euros on land and development. Hercesa sold a 13.000 square meter plot of land next to the Basarab Bridge and Carrefour Orhideea to an association of local businessmen in 2014. The Spanish developer was initially planning on starting a new residential project in the area but plans were suspended when the financial crisis started and were never picked up. The transaction value wasn’t made public, however, market specialists estimate that the total cost exceeded 5.5 million euro.
The same Spanish developers inaugurated the Cismigiu Hotel back in 2014. The hotel is set in a stunning historical building in Bucharest’s center. The total investment is estimated to be around 15 million euros with income for the first year being expected to be between 1.5 and 1.8 million euros.
