New home on Primaverii Blvd? Take an old one down first!

The traditional residential areas in Bucharest, such as Aviatorilor, Primaverii, Dorobanti or Floreasca have run out of land, given that they have always been the top choice for those looking to buy a home.

Subsequently, new residential areas in the outskirts of the city have been developed over the last two years, as they provide plenty of land with a high development potential. These new areas are Baneasa-Iancu Nicolae, Herastrau-Nordului, Ionescu-Sisesti or even Snagov, as explained by Cristian Ionescu, manager with the Regatta real estate company on Tuesday. Prices in these areas have surged lately and practically tripled in just a few years.

On the other hand, there is an option for the areas inside the city and that is buying those plots of land occupied by buildings, which can be taken down, according to the same analyst.

Other sources on the market were saying prices in the Primaverii area would go up 10% the moment it became clear there was no more land for sale. Under the circumstances, the developers on the residential segment will soon invest in projects to build single-family homes in the outskirts of the Capital, set to come at prices comparable to those of the regular flats, but provide more comfort and better quality.

“Since the existing residential areas have a limited development potential due to the scarcity of land, the investors may very well turn to alternative perimeters near Bucharest,” Ionescu on Tuesday said during the “Real estate development, construction and operation,” conference organised by FinMedia.

Another obstacle hindering the real estate development is the legal status of the land, Ernest Popovici, Senior Partner Popovici & Asociatii (Popovici & Associates) law firm said.

“The experience of the past few years has shown us investors are constantly and, in most cases, almost solely concerned about the status of the real estate,” Popovici explained. bogdan.neagu@zf.ro