Money Buzz! Europa

Category: Real Estate

  • Only 13% of the 9.1 million Romanian residences were built in the last 30 years

    Only 13% of the 9.1 million Romanian residences were built in the last 30 years

    Approximately 1.22 million new residencies were built in Romania between 1990 and 2019, representing only 13.4% of the total dwellings stock, according to Cushman & Wakefield Echinox.

    In only three counties the share of residences built in the last 30 years exceeds the 20% threshold – Constanța (22.1%), Cluj (22%) and Suceava (21.4%), at the opposite pole being Teleorman (5,6%), Hunedoara (5.6%) and Caraş-Severin (4.1%), where the residential stock is dominated by an overwhelming precentage of dwellings built more than 30 years ago.

    Almost half of Ilfov residences are new

    In the Bucharest – Ilfov region, the share of residences built between 1990 and 2019 is 16.8%, with a significant difference between the Capital (10.3%) and Ilfov county (46.1%).

    In total absolute numbers, both in Bucharest and Ilfov, 90,000 residences have been built over the last 30 years.

    After Bucharest and Ilfov, the largest residential markets over the last 30 years are Cluj (77,074 new homes), Constanța (66,645 units), Iași (59,948), Suceava (58,557) and Timiș (48,714).

    The most active residential markets in Romania, in terms of deliveries made between 1990 and 2019

    CountyFinalised residences 1990 – 2019Residential stock     (End of 2019)New residential share       (1990 – 2019) in total
    Bucureşti90.294875.24810,3%
    Ilfov89.834194.67446,1%
    Cluj77.074350.35022,0%
    Constanţa66.645301.29222,1%
    Iaşi59.948331.20318,1%
    Suceava58.557273.19921,4%
    Timiş48.714308.59215,8%
    Argeş43.719283.10115,4%
    Prahova39.147329.33011,9%
    Bacău37.712284.00313,3%
    Braşov35.671256.31913,9%
    Source: Cushman & Wakefield Echinox, based on the National Institute of Statistics data

  • Poland: More dwellings completed this year than the year before

    Poland: More dwellings completed this year than the year before

    According to the preliminary data gathered by the Statistics Office, 135.8 thousand dwellings were completed in the period of January-August 2020, by 5.5% more than a year ago.

    Developers completed 87.7 thousand dwellings (9.4% more than in the corresponding period of 2019), whereas private investors completed 46.0 thousand dwellings, by 3.5% more than in 2019.

    Within these forms of construction, 98.4% of the total number of completed dwellings was built (respectively 64.6% and 33.8%).

    Less dwellings than a year ago were completed within cooperative construction (816 compared to 1.436 dwellings).

    In other forms of construction (municipal, public building society and company construction) 1.338 dwellings were completed in total (compared to 2.718 in the previous year).

    The total useful floor area of dwellings completed in the period of January-August 2020 amounted to 12.1 million m2, by 4.4% more than in the corresponding period of the previous
    year.

    Compared to the period of January-August 2019, the average useful floor area of 1 dwelling decreased by 0.9 m2 to the level of 88.8 m2.

  • First Slovak skyscraper’s foundations being concreted

    First Slovak skyscraper’s foundations being concreted

    Contractors began concreting the foundation slab for Eurovea Tower, the first skyscraper in Slovakia. Before concreting began, construction workers attached a 1.880-ton steel concrete reinforcement.

    The thickest reinforcement bars are four centimetres in diameter, 12 meters long, and weigh 120 kilograms. The foundation slab will comprise a three-meter thick, 7.050 cubic meters (cbm) volume of concrete.

    Three concrete mixers and two back-ups are on site, which revolve over 630 times throughout the concreting process.

    Concrete reaches the excavation site via three mobile pumps, which are supplemented by one stand-by pump during technical breaks with one back-up also prepared.

    Forty workers per shift work on the concreting of the skyscraper’s base plate.

    Preparatory work began in March 2019 on the construction site between Eurovea’s first stage and Apollo Bridge, with a 420,000-cubic meter pit 300 metres long, 100 metres wide, and 14 metres deep excavated.

    Construction of the Eurovea 2 project began after the official building permit was issued in December 2019.

    In May, the first 91-meter crane was erected on site to build the shopping centre. A total of 14 cranes will be working on the project, with the tallest ever built in Slovakia.

    How Eurovea extension will look

    Eurovea Tower will be the first skyscraper in Slovakia, with 45 floors, 168 meters high and 389 residences.

    Eurovea 2 will include an extension of the shopping centre – 25.000 sq m of retail space (85.000 sq m with current centre).

    Other buildings on site are Eurovea Riverside – 7 floors, 96 residences, Pribinova X – 18.000 sq m of leasable office space and Pribinova Y – 22.000 sq m of leasable office space.

    The project will include more underground garages – 1.400 parking spaces and the lengthening of the Danube promenade – 25.000 sqm waterfront park, new activity park and playgrounds.

    Completion is expected in 2022-2023.

  • Gran Via, over 2.000 apartments delivered on the Romanian market

    Gran Via, over 2.000 apartments delivered on the Romanian market

    The Spanish developer Gran Via Real Estate crosses the 2.000 apartments delivered on the Romanian market milestone in 2020, with the completion of the last phase of the Timișoara 58 project – 300 apartments.

    Timișoara 58 project has been developed since 2013, in four construction phases, on a 32.000 sq m plot of land (former Frigocom industrial platform) totaling an investment of EUR 45 million in land acquisition, infrastructure, 7 blocks and various facilities such as parking spaces, driveways or playgrounds for tenants.

    “The last years have represented a team effort for us, reaching the end of 2019 with 1,800 finalized apartments. 2020 is a year of change and we considered it opportune, once the milestone of 2,000 apartments is exceeded, to redefine the Gran Via brand in a contemporary way”, explains Ana Maria Nemțanu, Sales & Marketing Director, Gran Via Romania.

    Until last year, 500 apartments were delivered, and, after the completion of the final phase, the entire community will count 800 units: studios, two and three rooms, as well as duplex apartments.

    All apartments fall within the 5% VAT rate.

  • Rising housing costs causing concern for Austrians

    Rising housing costs causing concern for Austrians

    Austrians consider the trends in housing costs to be much more problematic, says an survey by IMAS International, conducted on behalf of Erste Bank.

    Forty-nine per cent of the 900 interviewees have already found costs over the last five years to have ”risen somewhat”, while 19 per cent have found them to have ”risen a lot”.

    Only a third of study participants found that not to be so.

    While 77 per cent of Austrians considered housing ”affordable”/”very affordable” in the 1980s, that figure is now only 25 per cent.

    Barely 18 per cent think housing will still be affordable in 2030.

    Income not rising as fast as property prices

    While the actual wages of Austrians have, according to the Austrian Institute of Economic Research (Wifo), only risen by 4.9 per cent since 2015, rent prices, according to the ECB’s consumer price index, have shot up by 15 per cent.

    They have indeed become a whopping 27 per cent more expensive in the same time period.

    The coronavirus pandemic had a noticeable impact on Austrians’ housing-related desires. While 59 per cent wanted to change their housing situation in February, that figure had dropped to 54 per cent by June.

    Austrians still want their own house

    The pandemic sparked a notable 7% rise in those wanting to buy their own home, particularly among 18 to 34-year-olds, between February and June 2020.

    Twelve per cent of people want to renovate, eleven per cent want to modify their outdoor areas (+3 per cent compared to the start of the year) and eleven percent want to buy their own home (+5%).

  • Slovakia: Construction volume reached EUR 458,2 million in July 2020

    Slovakia: Construction volume reached EUR 458,2 million in July 2020

    In July 2020, the decrease of construction production in Slovakia, year-on-year, remained significant, at 13,3 %.

    Although in July 2020, the construction output mitigated its year-on-year decrease, it remained very significant.

    Compared with July 2019, it decreased by 13,3 %, its total volume reached EUR 458,2 million. Compared with June 2020, it dropped by 0,7 %, after seasonal adjustment.

    Compared with July 2019, output realized by domestic construction enterprises decreased by 12,9 % (in June, the decrease was by 18,6 %). In total, it reached EUR 430,5 million.

    Over the first seven months of 2020 compared with the corresponding period in 2019, construction output decreased by 8,4 % and reached EUR 2 757,9 million.

    The volume of domestic output reached EUR 2 561,3  million which is by 9,6 % lower than last year.

    The volume of construction works in new construction, renewals and enhancements decreased by 9,9 % to EUR 1 811,1 million and in repairs and maintenance by 10,5 % to EUR 658,4 million. Non-domestic output was higher by 9,5 %.

  • Cordia Romania launches Parcului20 phase two

    Cordia Romania launches Parcului20 phase two

    Cordia intends to start, by the end of 2020, construction works on the second phase of Parcului20 residential project in Expoziției area, North Bucharest.

    The company is preparing the first phase’s building commissioning and starts the sales for the project`s second phase in September 2020.

    Parcului20 is among the first smart residential projects in Romania, all its apartments being equipped with integrated state-of-the-art smart home systems.

    Over 3.000 square meters of private garden, charging stations for electric vehicles, bicycle parking spaces, yoga garden and outdoor equipment for calisthenics are amongst the main differentiators, as the project is designed for livability and energy efficiency.

    Cordia, investment budget worth EUR 40 mil. for acquiring land-plots in Bucharest

    In addition to the EUR 40 million investment in Parcului20 and to the EUR 120 mil. investment plan for developing residential projects on five already acquired land-plots in Central-North Bucharest, generating a 2,000 apartments pipeline on medium term, Cordia Romania has an investment budget worth EUR 40 mil. for acquiring land-plots in Bucharest.

    Thus, Cordia Romania`s total allocated investment budget on medium-term reaches a total of EUR 200 mil.

    The investments for further expanding on the Romanian real estate market will be partly financed using funds collected from the bond issuance under the National Bank of Hungary’s Bond Funding for Growth Scheme.

    Cordia has recently issued a EUR 135 million 7-year bond and a EUR 105 million 10-year bond to fund its international expansion.

    Cordia acquired nearly 93% of stocks of Polnord residential development company listed on the Warsaw Stock Exchange, a 20% stake in Argo Properties NV, a Dutch company active in the residential rental and large-scale urban renewal business in Germany, and Blackswan Property, a Birmingham-based PRS- (Private Rental Sector) specialist developer.

    The latest acquisitions increased Cordia’s development land bank to over 14.000 apartments.

  • Speedwell received the building permit for The Ivy Bucharest

    Speedwell received the building permit for The Ivy Bucharest

    Real estate developer Speedwell received the building permit for The Ivy, its residential project located in Băneasa, Bucharest.

    The construction works will kick off for the 228 apartments included in Phase 1, as stated in the building permit.

    Since launching sales, in February this year, 45% of the initial phase has been sold.

    The Ivy features a total of 800 dwellings, from studios to 2, 3 and 4-room apartments located in 10 buildings with a P + 6 height regime, spread out over 5 hectares of land.

    The complex includes a BREEAM Excellent certification supporting health and wellbeing through sustainable buildings, while also protecting natural resources, an important principle for all the Speedwell developments.

    In addition, the residents living here will have access to many facilities designed for modern living, such as a restaurant, pool, kindergarten, fitness centre and shops.  

    The residential division of Knight Frank Romania has been the consultant for the sales strategy and is in charge of the sales process.

  • European Investment Bank, loan for affordable housing in Szczecin

    European Investment Bank, loan for affordable housing in Szczecin

    Szczecin has become the second Polish town to receive a loan from the European Investment Bank (EIB) to finance a municipal development plan for social and affordable housing.

    The EIB has agreed to lend up to PLN 85 million (approx. €20 million) to two housing companies owned by the City of Szczecin for the construction and renovation of 250 social and affordable housing units (169 new and 81 renovated) and associated underground parking facilities.

    Szczecin loan includes two financing parts

    Up to PLN 58.25 million (approx. €13.7 million) was signed with Szczecińskie Towarzystwo Budownictwa Społecznego (STBS) and up to PLN 26.25 million (approx. €6.1 million) was signed with Towarzystwo Budownictwa Społecznego Prawobrzeże (TBSP).

    For the first time in social and affordable housing projects financed by the EIB, a specific focus on green infrastructure has been included in the operation.

    Thus, a separate PLN 3.4 million loan (approx. €0.8 million) was signed with Szczecińskie Towarzystwo Budownictwa Społecznego (STBS) to finance the integration of green roofs, urban farming plots, rainwater collection systems and other green elements.

    Before Szczecin, the EIB had signed two loans in this sector with two municipal companies in Poznań. Such loans financed the construction and renovation of over 2.300 social and affordable housing units in the capital of the Wielkopolska Region.

  • Residential developer Cordia enters UK market by acquiring Blackswan

    Residential developer Cordia enters UK market by acquiring Blackswan

    Cordia International has acquired UK developer Blackswan. Cordia financed the transaction by using funds collected from the bond issuance under National Bank of Hungary’s Bond Funding for Growth Scheme.

    The acquisition allows Blackswan to deliver a GBP 550 million project pipeline across the West Midlands

    Cordia is the residential development platform of Futureal Group, one of the leading real estate development and investment groups in Central and Eastern Europe with more than 500 real estate professionals and 650.000 sqm of properties under construction across 32 ongoing projects.

    The company’s latest acquisition marks its first investment in the UK market.

    The UK company will continue to operate under the Cordia Blackswan brand and be led by the current management team.

    The Blackswan transaction as well as the acquisition of 93% of Warsaw listed Polish residential developer Polnord S.A and a 20% stake in Argo Properties was partly financed by using the funds collected from the bond issuance within the Bond Funding for Growth Scheme of National Bank of Hungary’s.

    The latest acquisitions increased Cordia’s development land bank to over 14.000 apartments.

    Cordia has recently issued a EUR 135 million 7-year bond and a EUR 105 million 10-year bond to fund its international expansion and foray into the private rental sector.

    Blackswan Property was founded by Marcus Hawley in 2009 and focuses on residential-led mixed-use developments in the West Midlands region.

    Projects currently include The Lampworks, a 124 home build-to-rent apartment scheme and The Gothic, an ambitious reanimation of listed and heritage buildings which will create a new residential and leisure destination, both located in Birmingham’s Jewellery Quarter, on the edge of Birmingham City Centre.

  • Romanian investment market shows resilience in the face of the pandemic

    Romanian investment market shows resilience in the face of the pandemic

    The recent transactions closed in the last weeks, with a total value of 400 million euros, demonstrate that the investment market in Romania remains strong and attractive even in the Covid-19 pandemic period, according to Cushman & Wakefield Echinox real estate consultants.

    The joint-venture of Resolution Property and Zeus Capital Management recently acquired Floreasca Park office project from Bucharest, while AFI Europe finalised the acquisition of NEPI Rockcastle’s office portfolio in Romania, including Floreasca Business Park, The Lakeview, Aviatorilor 8 (all in Bucharest) and City Business Center from Timișoara.

    Results registered in Q2 and Q3 of 2020 have confirmed some important factors

    The closing of Floreasca Park in August, shortly followed by NEPI Rockcastle’s sale of their office portfolio to AFI Europe, under-pins the fact that the interest from investors in Romania remains and is set to grow.

    The joint-venture of Resolution (Fosun Group) and Zeus Capital Management shows that new money is prepared to enter Romania, a trend which continues that of 2019, when Morgan Stanley acquired their first property in Romania.

    The strength of tenant covenants in any building is essential and will be analysed even more closely by investors in the future.

    The quality of a building will also become ever more important, if sellers are seeking to maximise pricing and attract a wide investor pool.

    Debt finance continues to be available, however we do expect banks to be more selective in their funding choices, particularly in relation to the tenant strength and quality aspects mentioned above.

  • Epic Marbella furnished by Fendi Casa to be completed in Spring 2022

    Epic Marbella furnished by Fendi Casa to be completed in Spring 2022

    Epic Marbella project will deliver 56 residences located in a beautiful enclave reaching over twelve acres of land on the Golden Mile of Marbella.

    The building license has been granted and construction has begun. This new venture marks Fendi Casa’s first branded real estate project in Europe, a concept that offers its discerning clientele a unique lifestyle experience.

    Each residence includes a Fendi signature kitchen with Gaggenau appliance and Fendi signature wardrobes. All residences offer Italian marble bathrooms with custom-designed fixtures.

    Exceptional amenities also include a spacious state-of-the-art Technogym fitness center.

    Residents can immerse themselves into a rare 25 metre infinity pool and use the lavish private signature spa outfitted with dedicated treatment rooms, two hammams, and two saunas, reserved exclusively for residents.

    The residences include 22 feet of floor-to-ceiling windows welcoming breath-taking scenery that surrounds the region.

    Epic Marbella residences are three to five bedrooms, offering personal retreats and penthouses ranging in size from 3.800 square feet to more than 9.200 square feet.

    Prices range from €2.5 million to €7 million.