Falling prices get land market moving again
February 2013 - From the Print Edition
Cheaper land prices have finally persuaded real estate developers to return to the market, with the most activity coming in the retail sector, say property industry sources.
In the most recently announced transaction, Romanian-owned DIY player Dedeman bought a 3.2 hectare plot in Galati, a deal brokered by The Advisers/Knight Frank. The land is in the western part of the city, close to the ring road.
"Retail developers are looking for land plots with surface areas of 2,000-20,000 sqm, with good locations in extremely populated areas," Radu Lucianu, Managing Partner of Capital Property Advisors, told The Diplomat. "The current price of land is at a satisfactory level for developers and with some negotiations a deal can be made."
The drop in prices is expected to bring new deals involving former industrial platforms in 2013. It is rumored that an 18,000 sqm plot owned by Romprim will be acquired by Kaufland. At the end of last year NEPI announced the acquisition of 12.7 hectares, also in Galati. This city has a population of over 300,000 and is not yet served by a large shopping centre.