Money Buzz! Europa

Tag: residential

  • Investors are planning to allocate more money to residential assets

    Investors are planning to allocate more money to residential assets

    Investors are planning to allocate more money to the purchase of residential assets in Europe this year, JLL shows.

    This type of investment is set to grow throughout 2021, following the robust performance of the market throughout 2020, which resulted in €83.4bn being invested into the sector.

    Living assets made up 13% of asset allocations from respondents, with that set to increase to 21% if full investment ambitions were realised.

    With only 11% of respondents looking to decrease their allocation to Living assets, the hunt for suitable stock to invest in is becoming increasingly competitive.

    The percentage of respondents looking to increase their allocation to Living assets has grown steadily since the first Living Investor Survey from 41% to 59%.

    While investors are determined to increase their allocation to the sector, 78% have identified a lack of suitable product as being a major barrier to accomplishing this.

    While only 8% of respondents have exposure to all five sub-sectors of Living assets, JLL’s forecast expects this to grow to 27%.

    Clearly there is a substantial shift towards diversifying investments in the Living sector, and investors will be growing operational expertise to meet these ambitions.

    Not only are investors looking to diversify within Living assets, but nearly two-thirds (63%) of respondents said they are looking to expand to at least one additional market.

    Addressing barriers to entry from an investment perspective, 78% of respondents identified a lack of suitable product as restricting them from investing.

    This is evidenced by the fact that 30% of all purchasing activity in 2020 was for assets not yet completed.

  • Bucharest: 1 billion euros invested in middle&upper class housing projects

    Bucharest: 1 billion euros invested in middle&upper class housing projects

    Real estate developers active in Bucharest are investing a total of 1 billion euros in middle & upper class housing projects, according to Bucharest Real Estate Club.

    The total investments volume, on all sub-segments of the Bucharest real estate market is 3.5 billion euros (of which the residential sector – middle & upper class quality projects represent a total of 1 billion euros).

    The area that keeps on attracting most of the quality projects investments is the Northern part of Bucharest, with its sub-markets Barbu Vacarescu – Floreasca, Aviatiei, Pipera, Baneasa, Expozitiei, Sisesti – Straulesti.

    National Real Estate Cadastre Agency data show a residential sales volume higher by 19% in 2020 as compared with 2019, despite a 2 months blockage during the lockdown period at pandemic outbreak.      

    2-rooms apartments remain prioritary in the development mix for the middle segment, as they are most wanted by buyers and price – affordable.  

    Individual houses and villas demand increases by 30%, but most projects focus on apartments well located within the City and served by various facilities.

    Pandemic favors projects with multiple facilities for the living communities: green areas, children playgrounds or special areas designed for outdoor sports.

    Considering the evolution towards a new hybrid work format (several days from home and several days from the office), developers also consider the idea to include an office area in the new housing layouts, which can improve the confort of working from home.

    The luxury segment continues its development trend, with more and more sophisticated clients, whose incomes were not affected by the pndemic and who that pay up to 4-5.000 EUR/sqm for exclusive properties. 

  • Bulgaria: 751 newly built residential buildings in Q1 2020

    Bulgaria: 751 newly built residential buildings in Q1 2020

    According to preliminary data of the National Statistical Institute of Bulgaria in the first quarter of 2020 the number of newly built residential buildings was 751 and the newly built dwellings in them were 3 473.

    Compared to the first quarter of 2019 the buildings were by 86 more (or by 12.9%), and the newly built dwellings in them increased by 876 or by 33.7%.

    In the first quarter of 2020, 79.4% of the newly built residential buildings were with steel-concrete construction, 17.7% with solid structure, 2.5% with ‘other’ and 0.4% with panel.

    Highest is the relative share of houses (72.2%), followed by blocks of flats (19.1%). As compared to the first quarter of 2019 the number of newly built houses, blocks of flats and the country houses rose.

    The highest number of residential buildings built is in Varna district – 100 residential buildings with 699 dwellings, followed by Sofia – 99 residential buildings with 852 dwellings and Plovdiv – 99 buildings with 308 dwellings in them.

  • Bulgaria: 1.351 residential buildings received building permits in Q1 2020

    Bulgaria: 1.351 residential buildings received building permits in Q1 2020

    In the first quarter of 2020, the municipal authorities in Bulgaria issued building permits for construction of 1.351 residential buildings with 6.317 dwellings and 815.293 sqm gross building area.

    22 administrative buildings/offices with 64.183 sqm gross building area and 883 other buildings with 472.160 sqm gross building area, received building permits.

    Decrease in building permits for residential and other buildings since last quarter

    As compared to the previous quarter the issued building permits for residential buildings decreased by 10.6%, their dwellings numbers by 15.5% and the gross building area by 9.0%.

    The number of issued building permits of administrative buildings rose by 4.8% and their gross building area by 204.9%. The issued building permits for other buildings fell by 19.9% and their gross building area by 22.6%.

    As compared to the first quarter of 2019 the issued building permits for new residential buildings increased by 8.3%, while their dwellings decreased by 19.3% and the gross building area – by 21.1%.

    The number of issued building permits of administrative buildings and their gross building area registered a drop by 21.4% and 4.8% respectively. The issued building permits for other buildings fell by 23.2% and their gross building area – by 15.7%.

    The highest number of building permits for new residential buildings was issued in Sofia – 227, Plovdiv – 201, Varna – 153, Sofia – 113 and Burgas – 87.

    Most dwellings are to be built in Sofia – 2 512, Plovdiv – 701, Varna – 680, Burgas – 676 and Kardzhali – 236.

    How many construction sites were opened in Q1 2020

    In the first quarter of 2020 began the construction of 847 residential buildings with 4.454 dwellings and 529.686 sqm gross building area, of 12 administrative buildings/offices with 4.873 sqm gross building area and of 545 other buildings with 510.416 sqm gross building area.

    The construction of the highest number of new buildings were started in:

    • Plovdiv – 146 residential buildings and 70 other buildings;
    • Sofia – 136 residential buildings, 4 administrative buildings and 22 other buildings;
    • Stara Zagora – 52 residential buildings and 76 other buildings;
    • Burgas – 94 residential buildings and 32 other buildings;
    • Varna – 76 residential buildings and 18 other buildings.