| Return | SIGNS OF THE TIMES - Real Estate Market in Romania Major investment in real estate developments and shopping centres April 11, 2008 Major investment in real estate developments and shopping centres coming next week Floreasca City by Raiffeisen Evolution Raiffeisen Evolution real estate developer, a division of Austrian financial group Raiffeisen, is launching, on Wednesday, its mixed Floreasca City project in northern Bucharest, an investment of EUR 200–250 M. The project will consist of a mall – the Promenade Mall – an office tower about 130 in height - the Sky Tower, the highest office building in Bucharest – and a second office building. The Promenade Mall could be the second mall in the north of the Capital, following Baneasa Shopping City - the largest shopping centre in Bucharest and in the country to be launched this week. Since the end of 2007, Raiffeisen Evolution, is also the owner of 11 hectares in the Straulesti area, purchased from Petrom for EUR 90 M, where it is planning to develop a large-scale project. On the other hand, Raiffeisen Evolution is the developer of the Oracle Tower in northern Bucharest sold for EUR 20 M to insurance company Unique, in 2005. InCity Residences showroom opening Anchor Group is opening, on Tuesday, the showroom for its InCity Residences residential development. Anchor Group is among the lead developers in Romania. With an investment volume of EUR 340 M in finalised or planned projects, Anchor Group holds vast experience in the development of retail, residential and office projects. Its main accounts are: Bucharest Mall – Romania’s first mall - , Plaza Romania, en of the most popular shopping and leisure destinations in Bucharest - Anchor Plaza – the first class A office building integrated with a shopping centre – and InCity Residences - a residential ensemble situated in the Bucharest city centre. InCity Residences includes 500 apartments with modern architecture and customised interior design and finishings. The construction began in August 2006 and is to be finalised in the latter half of 2008. Baneasa Shopping City Mall The Baneasa Shopping City Mall, an inherent part of the Baneasa Commercial Area – is pending official opening on April 18, 2008, according to a press release issued by the developer, Baneasa Developments. Apart from prominent fashion brands, Baneasa Shopping City is also introducing the country’s first three-floor food court dedicated to the fast food segment, a first floor accommodating restaurants and a second floor dedicated to the club & lounge area. In its last construction phase, Baneasa Shopping City will bring a unique concept to the market – the largest entertainment centre in Romania. Real estate consultancies' fees to reach 100m euros Construction work rhythm places Romania 5th in the EU A significant growth has been taking place over the recent years in constructions. Triggered by an increased living standard, by land retrocession, by the “hunger” for houses in the country, by new lending policies pursued by banks, the construction sector witnesses a steady dynamics, contributing to the GDP growth and, unfortunately, to raising the trade deficit because of imports of construction materials, equipment and accessories. According to Eurostat, the construction work growth rhythm in Romania is three times faster than the European Union average, and ranks 5th in the EU member country top that is led by Bulgaria. Construction works registered a 29.8 per cent growth in the first quarter of this year in Romania, compared with the same period last year, the 27-state average being of 29.8 per cent. Bulgaria ranks first in the table, with a 62.8 per cent growth. Lithuania, with a 43.5 per cent growth rhythm, Poland with a 51.3 per cent growth and Slovenia with 35.7 per cent also surpassed Romania. When we refer to this sector of economy, we need to take into consideration several “branches”. There are, on one side, individual constructions, belonging to people who build a house or a villa on their own land. Then it is about the high pace at which super-markets and hyper-markets emerge in Bucharest and in other important cities of the world. One should not overlook the developments in tourist areas, particularly in the mountain areas, which are also growing fast. Lastly, the big cities, mainly in the outskirts but not only, important district projects are developed, with the participation of famous foreign and Romanian companies. They meet the lodging and upgrading expansion needs, resulting in the establishment of small “cities” around large cities. One should underline that the amplitude of such projects is stimulated, as mentioned, by the increased incomes of certain social categories and by the accessibility of loans from commercial banks. In a few years, both Bucharest and other cities of Romania will have a new “look”, both from an aesthetic viewpoint and in terms of conveniences provided to the new owners. The way these projects look like, what are the prospects provided by them, what are the facilities provided to clients – these are only a few questions that the current supplement intend to answer to, in an attempt to offer an accurate and ample image of existent projects. Naturally, the supplement is unable to cover all aspects, but it is a good start in describing immediate projects. Buyers’ preferences in terms of new housing units are beginning to crystallise, and developers adjust their supply to the demand. The buzz word is “comfort”; but this is also a matter of convenience. Areas are calculated to meet buyers’ needs, so as to have housing units in new projects available for prices comparable to those in old blocks of flats. Although every Romanian dreams of an apartment with an inside staircase, in actual fact most buyers of housing units in the new residential complexes choose studios. In many projects, the first and best selling units were one-bedroom apartments. This is owing both to the small price per unit, small area and to the fact that studios are easier to rent or sell. Real estate experts claim the easiest apartments to sell are the two or three-bedroom ones, with areas ranging from 45 and 60 sq m for the two-room flats and 60-100 sq m for the three-room units, located in areas with easy access to public transportation means. Developers are already beginning to adjust their supply to the demand in the market. The first effect is the low supply of four-bedroom units. For instance, most projects promoted in this year’s Real Bucharest real estate trade fair only included two and three-room apartments and studios. For those who want to buy a four-room apartment, the only choices are villa complexes or the complexes addressing customers in high-income categories, who can afford larger apartments. Blocks of flats addressing the middle class will not include large-area flats. Moreover, areas of such units are expected to decrease, according to some experts, given the incomes of the target group on the one hand, and the announced rise in utility prices, on the other hand. The new offer addressing the middle class will settle, in terms of flat area, within values similar to those of old flats, while luxury apartments will vary in size, depending on the concept of the project and of the type of flat (e.g. penthouse). The difference between new and old apartments will not be made by areas, which will be comparable, but rather by the safety level, the finishing quality and the efficient partitioning of the existing space. 450 MN euros worth project in Bucharest commercial center UK developer Modus Properties will invest, along with partner company Nova Imobiliare, some 450 million euros in the construction of a new commercial center in Bucharest, the largest facility of its kind until today. The complex will measure a total of 162,000 square meters (some 200,000 square yards), but only 52,000 square meters will be opened in the first phase, before the end of 2009. Beside stores, the complex will include 16 movie theaters, restaurants, pubs, coffee shops, entertainment areas and 8,000 parking spaces. The "Colosseum Shopping Center" will be built in the North - Western edge of Bucharest. Bucharest Real Estate Space Boom Real estate investments in Romania are dropping Euro Habitat develops residential area Land prices to stabilize nationwide |
As EU date nears, Bucharest shakes off a drab image By Roxana Popescu, International Herald Tribune MAY 6, 2005 BUCHAREST Cristina Tutan sighed as she drove up to the Stirbei Palace, a villa in the city center that had been on the market for more than a year. "It's falling to pieces," Tutan said as she stepped into the foyer. That was putting it gently. The neo-Classical mansion, built in 1835 and seized by the Communist government in 1940, had been neglected for decades. What remained was a carcass: smashed floor mosaics, rotting wood and layers of dust. Yet Tutan, a real estate agent who specializes in luxury properties, recently sold the property for €3.5 million, or $4.5 million, to a Romanian. (Real estate transactions in Bucharest are expressed in euros, rather than Romanian leus.) She had banked on the allure of the villa's history and Bucharest's potential as an "it" city - and her gamble paid off. Long considered a step behind its Western neighbors, this capital of two million people has struggled to shake off its reputation as a gritty den of corruption. Its success may have been gradual until recently but, as the large digital clock in Piata Universitatii, the university square, counts down to Jan. 1, 2007, the country's target date for entering the European Union, the change is accelerating by the day. Cafés and restaurants with global flavors have been opening in every neighborhood, glamorous new hotels have appeared with galleries of boutiques, and plans are under way to revitalize Lipscani, a drab but bustling neighborhood with cobblestone streets and antique shops that eventually could anchor the city's historic district. "Bucharest will be, whether you like it or not, a grand city," declared Artur Silvestri, a real estate agent and the editor of Casa Lux magazine. "Whoever is smart puts money into this country before integration. A foreigner at the present moment should hurry. If he didn't come until now, that was a mistake, but there's still time." (Anyone is allowed to buy buildings in Romania, although only citizens or legal entities like corporations can buy undeveloped land.) In 2004, prices rose 65 percent for land and 40 percent for residential properties, primarily because of growing demand from both Romanians and foreigners, Tutan said. Another factor was an increase in bank financing, which made it easier for Romanians of all income levels to buy homes, according to a yearly market overview by Eurisko Consulting, a real estate company. While the city's suburbs are acquiring slick new apartments and American-style developments with names like Washington Residence, a few Romanians and many more foreigners are eyeing the city's old housing stock. These villas, concentrated in the city center and in the exclusive northern district, date from the mid-19th and early 20th centuries, a time when the city was known as Little Paris. Many emulate French fin-de-siècle architecture, but the more distinctive ones feature the carved stone garlands and arched loggias of the local neo-Romanian style. Villas start at about 1,000 square meters, or 10,800 square feet, with a basement, an attic and two or three floors of living space. They typically have living and dining rooms, a kitchen, four or five bedrooms, two bathrooms on each floor and often a music room or morning sitting room. This is a city of startling, and sometimes poignant, contrasts - where small churches are flanked by massive Communist-era buildings and the traffic stops for nothing but the increasingly rare horse-drawn cart. The treatment of these properties has been no exception. Along Calea Victoriei, a thoroughfare lined with villas, including the Stirbei Palace, it seems as if the restoration fairy has waved her wand most haphazardly. Some buildings are sparkling clean, a few are covered in scaffolding and many are still in shambles. The disparate conditions are the result of the former government's reluctance to return properties confiscated during the Communist era, leading to a backlog of thousands of requests. The new government, led by President Traian Basescu, has promised to process the unresolved cases and to clean up the judicial system, so some villas eventually may go on the market. But for now, the supply is limited, agents said. Still, the real value is in the dilapidated properties because, in Romania, repairs are rarely guaranteed, so buying a renovated villa can be risky. Making sure a building is earthquake-safe is a priority. "I have always been of the principle that when you're buying an old house, a house with a biography, you have to buy it unrenovated," Silvestri said. "Then, it is sincere. It talks to you, it tells you everything you need to hear." He sees a gaping difference between these historic homes and the city's new suburbs. "We may call them luxury neighborhoods, but that's no luxury," Silvestri said. "They're uncomfortable, new, shiny. But not luxury. Then, there's an authentic luxury market, and these are the old buildings." But authentic luxury does not come cheap. Rents for renovated villas are €4,000 to €15,000 per month along the ultra-exclusive Soseaua Kiseleff, a broad, tree-lined avenue. Homes for sale in the same area range from €1,200 to €2,000 per square meter, according to Eurisko. Prices, which are considerably lower in other areas, vary with a building's dimensions, age, neighborhood, condition and lot size. "Costs are high for Romania, but they aren't so high for Europe," said Tutan, who charges 1.5 percent commission on residential transactions. Adela Stan, a Romanian who bought a 1,400-square-meter unrenovated villa for €1.5 million in December, said she sensed it was the right time to act. "I saw how prices were skyrocketing," she said. "Our money was sitting in the bank, and everyone around us was buying." A week after closing the deal on the 1921 structure, another interested buyer called with an offer. While most foreigners in Bucharest work for embassies or multinational corporations, some second-home buyers have started trickling in. "Those personally invested in business here come for work," "Few people come to just live in Bucharest," said Despina Ponomarenco of Eurisko. "But it's a category that's developing. It's cheap, safe and it's interesting. Charming." BUCHAREST Cristina Tutan sighed as she drove up to the Stirbei Palace, a villa in the city center that had been on the market for more than a year. "It's falling to pieces," Tutan said as she stepped into the foyer. That was putting it gently. The neo-Classical mansion, built in 1835 and seized by the Communist government in 1940, had been neglected for decades. What remained was a carcass: smashed floor mosaics, rotting wood and layers of dust. Yet Tutan, a real estate agent who specializes in luxury properties, recently sold the property for €3.5 million, or $4.5 million, to a Romanian. (Real estate transactions in Bucharest are expressed in euros, rather than Romanian leus.) She had banked on the allure of the villa's history and Bucharest's potential as an "it" city - and her gamble paid off. Long considered a step behind its Western neighbors, this capital of two million people has struggled to shake off its reputation as a gritty den of corruption. Its success may have been gradual until recently but, as the large digital clock in Piata Universitatii, the university square, counts down to Jan. 1, 2007, the country's target date for entering the European Union, the change is accelerating by the day. Cafés and restaurants with global flavors have been opening in every neighborhood, glamorous new hotels have appeared with galleries of boutiques, and plans are under way to revitalize Lipscani, a drab but bustling neighborhood with cobblestone streets and antique shops that eventually could anchor the city's historic district. "Bucharest will be, whether you like it or not, a grand city," declared Artur Silvestri, a real estate agent and the editor of Casa Lux magazine. "Whoever is smart puts money into this country before integration. A foreigner at the present moment should hurry. If he didn't come until now, that was a mistake, but there's still time." (Anyone is allowed to buy buildings in Romania, although only citizens or legal entities like corporations can buy undeveloped land.) In 2004, prices rose 65 percent for land and 40 percent for residential properties, primarily because of growing demand from both Romanians and foreigners, Tutan said. Another factor was an increase in bank financing, which made it easier for Romanians of all income levels to buy homes, according to a yearly market overview by Eurisko Consulting, a real estate company. While the city's suburbs are acquiring slick new apartments and American-style developments with names like Washington Residence, a few Romanians and many more foreigners are eyeing the city's old housing stock. These villas, concentrated in the city center and in the exclusive northern district, date from the mid-19th and early 20th centuries, a time when the city was known as Little Paris. Many emulate French fin-de-siècle architecture, but the more distinctive ones feature the carved stone garlands and arched loggias of the local neo-Romanian style. Villas start at about 1,000 square meters, or 10,800 square feet, with a basement, an attic and two or three floors of living space. They typically have living and dining rooms, a kitchen, four or five bedrooms, two bathrooms on each floor and often a music room or morning sitting room. This is a city of startling, and sometimes poignant, contrasts - where small churches are flanked by massive Communist-era buildings and the traffic stops for nothing but the increasingly rare horse-drawn cart. The treatment of these properties has been no exception. Along Calea Victoriei, a thoroughfare lined with villas, including the Stirbei Palace, it seems as if the restoration fairy has waved her wand most haphazardly. Some buildings are sparkling clean, a few are covered in scaffolding and many are still in shambles. The disparate conditions are the result of the former government's reluctance to return properties confiscated during the Communist era, leading to a backlog of thousands of requests. The new government, led by President Traian Basescu, has promised to process the unresolved cases and to clean up the judicial system, so some villas eventually may go on the market. But for now, the supply is limited, agents said. Still, the real value is in the dilapidated properties because, in Romania, repairs are rarely guaranteed, so buying a renovated villa can be risky. Making sure a building is earthquake-safe is a priority. "I have always been of the principle that when you're buying an old house, a house with a biography, you have to buy it unrenovated," Silvestri said. "Then, it is sincere. It talks to you, it tells you everything you need to hear." He sees a gaping difference between these historic homes and the city's new suburbs. "We may call them luxury neighborhoods, but that's no luxury," Silvestri said. "They're uncomfortable, new, shiny. But not luxury. Then, there's an authentic luxury market, and these are the old buildings." But authentic luxury does not come cheap. Rents for renovated villas are €4,000 to €15,000 per month along the ultra-exclusive Soseaua Kiseleff, a broad, tree-lined avenue. Homes for sale in the same area range from €1,200 to €2,000 per square meter, according to Eurisko. Prices, which are considerably lower in other areas, vary with a building's dimensions, age, neighborhood, condition and lot size. "Costs are high for Romania, but they aren't so high for Europe," said Tutan, who charges 1.5 percent commission on residential transactions. Adela Stan, a Romanian who bought a 1,400-square-meter unrenovated villa for €1.5 million in December, said she sensed it was the right time to act. "I saw how prices were skyrocketing," she said. "Our money was sitting in the bank, and everyone around us was buying." A week after closing the deal on the 1921 structure, another interested buyer called with an offer. While most foreigners in Bucharest work for embassies or multinational corporations, some second-home buyers have started trickling in. "Those personally invested in business here come for work," "Few people come to just live in Bucharest," said Despina Ponomarenco of Eurisko. "But it's a category that's developing. It's cheap, safe and it's interesting. Charming." BUCHAREST Cristina Tutan sighed as she drove up to the Stirbei Palace, a villa in the city center that had been on the market for more than a year. "It's falling to pieces," Tutan said as she stepped into the foyer. That was putting it gently. The neo-Classical mansion, built in 1835 and seized by the Communist government in 1940, had been neglected for decades. What remained was a carcass: smashed floor mosaics, rotting wood and layers of dust. Yet Tutan, a real estate agent who specializes in luxury properties, recently sold the property for €3.5 million, or $4.5 million, to a Romanian. (Real estate transactions in Bucharest are expressed in euros, rather than Romanian leus.) She had banked on the allure of the villa's history and Bucharest's potential as an "it" city - and her gamble paid off. Long considered a step behind its Western neighbors, this capital of two million people has struggled to shake off its reputation as a gritty den of corruption. Its success may have been gradual until recently but, as the large digital clock in Piata Universitatii, the university square, counts down to Jan. 1, 2007, the country's target date for entering the European Union, the change is accelerating by the day. Cafés and restaurants with global flavors have been opening in every neighborhood, glamorous new hotels have appeared with galleries of boutiques, and plans are under way to revitalize Lipscani, a drab but bustling neighborhood with cobblestone streets and antique shops that eventually could anchor the city's historic district. "Bucharest will be, whether you like it or not, a grand city," declared Artur Silvestri, a real estate agent and the editor of Casa Lux magazine. "Whoever is smart puts money into this country before integration. A foreigner at the present moment should hurry. If he didn't come until now, that was a mistake, but there's still time." (Anyone is allowed to buy buildings in Romania, although only citizens or legal entities like corporations can buy undeveloped land.) In 2004, prices rose 65 percent for land and 40 percent for residential properties, primarily because of growing demand from both Romanians and foreigners, Tutan said. Another factor was an increase in bank financing, which made it easier for Romanians of all income levels to buy homes, according to a yearly market overview by Eurisko Consulting, a real estate company. While the city's suburbs are acquiring slick new apartments and American-style developments with names like Washington Residence, a few Romanians and many more foreigners are eyeing the city's old housing stock. These villas, concentrated in the city center and in the exclusive northern district, date from the mid-19th and early 20th centuries, a time when the city was known as Little Paris. Many emulate French fin-de-siècle architecture, but the more distinctive ones feature the carved stone garlands and arched loggias of the local neo-Romanian style. Villas start at about 1,000 square meters, or 10,800 square feet, with a basement, an attic and two or three floors of living space. They typically have living and dining rooms, a kitchen, four or five bedrooms, two bathrooms on each floor and often a music room or morning sitting room. This is a city of startling, and sometimes poignant, contrasts - where small churches are flanked by massive Communist-era buildings and the traffic stops for nothing but the increasingly rare horse-drawn cart. The treatment of these properties has been no exception. Along Calea Victoriei, a thoroughfare lined with villas, including the Stirbei Palace, it seems as if the restoration fairy has waved her wand most haphazardly. Some buildings are sparkling clean, a few are covered in scaffolding and many are still in shambles. The disparate conditions are the result of the former government's reluctance to return properties confiscated during the Communist era, leading to a backlog of thousands of requests. The new government, led by President Traian Basescu, has promised to process the unresolved cases and to clean up the judicial system, so some villas eventually may go on the market. But for now, the supply is limited, agents said. Still, the real value is in the dilapidated properties because, in Romania, repairs are rarely guaranteed, so buying a renovated villa can be risky. Making sure a building is earthquake-safe is a priority. "I have always been of the principle that when you're buying an old house, a house with a biography, you have to buy it unrenovated," Silvestri said. "Then, it is sincere. It talks to you, it tells you everything you need to hear." He sees a gaping difference between these historic homes and the city's new suburbs. "We may call them luxury neighborhoods, but that's no luxury," Silvestri said. "They're uncomfortable, new, shiny. But not luxury. Then, there's an authentic luxury market, and these are the old buildings." But authentic luxury does not come cheap. Rents for renovated villas are €4,000 to €15,000 per month along the ultra-exclusive Soseaua Kiseleff, a broad, tree-lined avenue. Homes for sale in the same area range from €1,200 to €2,000 per square meter, according to Eurisko. Prices, which are considerably lower in other areas, vary with a building's dimensions, age, neighborhood, condition and lot size. "Costs are high for Romania, but they aren't so high for Europe," said Tutan, who charges 1.5 percent commission on residential transactions. Adela Stan, a Romanian who bought a 1,400-square-meter unrenovated villa for €1.5 million in December, said she sensed it was the right time to act. "I saw how prices were skyrocketing," she said. "Our money was sitting in the bank, and everyone around us was buying." A week after closing the deal on the 1921 structure, another interested buyer called with an offer. While most foreigners in Bucharest work for embassies or multinational corporations, some second-home buyers have started trickling in. "Those personally invested in business here come for work," "Few people come to just live in Bucharest," said Despina Ponomarenco of Eurisko. "But it's a category that's developing. It's cheap, safe and it's interesting. Charming." BUCHAREST Cristina Tutan sighed as she drove up to the Stirbei Palace, a villa in the city center that had been on the market for more than a year. "It's falling to pieces," Tutan said as she stepped into the foyer. That was putting it gently. The neo-Classical mansion, built in 1835 and seized by the Communist government in 1940, had been neglected for decades. What remained was a carcass: smashed floor mosaics, rotting wood and layers of dust. Yet Tutan, a real estate agent who specializes in luxury properties, recently sold the property for €3.5 million, or $4.5 million, to a Romanian. (Real estate transactions in Bucharest are expressed in euros, rather than Romanian leus.) She had banked on the allure of the villa's history and Bucharest's potential as an "it" city - and her gamble paid off. Long considered a step behind its Western neighbors, this capital of two million people has struggled to shake off its reputation as a gritty den of corruption. Its success may have been gradual until recently but, as the large digital clock in Piata Universitatii, the university square, counts down to Jan. 1, 2007, the country's target date for entering the European Union, the change is accelerating by the day. Cafés and restaurants with global flavors have been opening in every neighborhood, glamorous new hotels have appeared with galleries of boutiques, and plans are under way to revitalize Lipscani, a drab but bustling neighborhood with cobblestone streets and antique shops that eventually could anchor the city's historic district. "Bucharest will be, whether you like it or not, a grand city," declared Artur Silvestri, a real estate agent and the editor of Casa Lux magazine. "Whoever is smart puts money into this country before integration. A foreigner at the present moment should hurry. If he didn't come until now, that was a mistake, but there's still time." (Anyone is allowed to buy buildings in Romania, although only citizens or legal entities like corporations can buy undeveloped land.) In 2004, prices rose 65 percent for land and 40 percent for residential properties, primarily because of growing demand from both Romanians and foreigners, Tutan said. Another factor was an increase in bank financing, which made it easier for Romanians of all income levels to buy homes, according to a yearly market overview by Eurisko Consulting, a real estate company. While the city's suburbs are acquiring slick new apartments and American-style developments with names like Washington Residence, a few Romanians and many more foreigners are eyeing the city's old housing stock. These villas, concentrated in the city center and in the exclusive northern district, date from the mid-19th and early 20th centuries, a time when the city was known as Little Paris. Many emulate French fin-de-siècle architecture, but the more distinctive ones feature the carved stone garlands and arched loggias of the local neo-Romanian style. Villas start at about 1,000 square meters, or 10,800 square feet, with a basement, an attic and two or three floors of living space. They typically have living and dining rooms, a kitchen, four or five bedrooms, two bathrooms on each floor and often a music room or morning sitting room. This is a city of startling, and sometimes poignant, contrasts - where small churches are flanked by massive Communist-era buildings and the traffic stops for nothing but the increasingly rare horse-drawn cart. The treatment of these properties has been no exception. Along Calea Victoriei, a thoroughfare lined with villas, including the Stirbei Palace, it seems as if the restoration fairy has waved her wand most haphazardly. Some buildings are sparkling clean, a few are covered in scaffolding and many are still in shambles. The disparate conditions are the result of the former government's reluctance to return properties confiscated during the Communist era, leading to a backlog of thousands of requests. The new government, led by President Traian Basescu, has promised to process the unresolved cases and to clean up the judicial system, so some villas eventually may go on the market. But for now, the supply is limited, agents said. Still, the real value is in the dilapidated properties because, in Romania, repairs are rarely guaranteed, so buying a renovated villa can be risky. Making sure a building is earthquake-safe is a priority. "I have always been of the principle that when you're buying an old house, a house with a biography, you have to buy it unrenovated," Silvestri said. "Then, it is sincere. It talks to you, it tells you everything you need to hear." He sees a gaping difference between these historic homes and the city's new suburbs. "We may call them luxury neighborhoods, but that's no luxury," Silvestri said. "They're uncomfortable, new, shiny. But not luxury. Then, there's an authentic luxury market, and these are the old buildings." But authentic luxury does not come cheap. Rents for renovated villas are €4,000 to €15,000 per month along the ultra-exclusive Soseaua Kiseleff, a broad, tree-lined avenue. Homes for sale in the same area range from €1,200 to €2,000 per square meter, according to Eurisko. Prices, which are considerably lower in other areas, vary with a building's dimensions, age, neighborhood, condition and lot size. "Costs are high for Romania, but they aren't so high for Europe," said Tutan, who charges 1.5 percent commission on residential transactions. Adela Stan, a Romanian who bought a 1,400-square-meter unrenovated villa for €1.5 million in December, said she sensed it was the right time to act. "I saw how prices were skyrocketing," she said. "Our money was sitting in the bank, and everyone around us was buying." A week after closing the deal on the 1921 structure, another interested buyer called with an offer. While most foreigners in Bucharest work for embassies or multinational corporations, some second-home buyers have started trickling in. "Those personally invested in business here come for work," "Few people come to just live in Bucharest," said Despina Ponomarenco of Eurisko. "But it's a category that's developing. It's cheap, safe and it's interesting. Charming." |
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