Andreea Hamza, Senior Living Director at the real estate consulting company JLL Romania, appreciates that the recent period has brought an increase in the interest of buyers for spacious apartments, with areas of over 100 square meters, signal that the standard in the high-end category is way to change and reach an unprecedented level.
“Romania currently offers some of the highest yields in Europe. It is the best time to invest in the residential sector “says Andreea Hamza.
According to JLL, the Aviation area of the Capital has marked one of the largest price increases in the last three years and has among the most attractive investment returns in the premium residential segment. The strategic positioning, in the northern part of Bucharest, has put the Aviation area on the map of the developers, who are investing significant sums to build large real estate projects here.
“The high-end segment, represented by property buyers with sale prices starting at 3,000 euros per square meter, totaling about 6% of the total number of units on the market, is the most resilient in crisis situations, so we anticipate a continuing its positive evolution “, say JLL consultants.
Although the definition of luxury differs for each person, the high-end residential market has some distinct features. Thus, potential buyers want locations with generous surfaces, well connected to the premium retail and leisure areas, but which also offer security and privacy. It also focuses on spaces that excel in innovation and technology, have a unique identity and offer a unique experience and diverse services – from concierge and private security, to gym, swimming pool, spa, business meeting areas and movie theater, JLL data show.
In the Aviation area, the average purchase price per useful square meter for a 2-room apartment built after 2000 has increased from 1,800 euros in 2018 to 2,500 euros in 2021, a jump of 39%, according to market studies performed by JLL.
For high-end, exclusive projects, which address a very demanding audience and are willing to allocate significant amounts to benefit from a unique experience, the price can reach up to 4,000 – 5,000 euros per square meter in this area.
The same upward trend is visible in terms of rents. If in 2017, the rent price was 10.5 euros per usable square meter, in 2021 it has already reached 13 euros per square meter, thus registering an increase of 26% in four years.
According to a study conducted by the World Bank, which analyzes the attractiveness of various areas in Bucharest for buyers, the Aviation area, along with Floreasca, is in the top of preferences and obtained the maximum score in this ranking of attractiveness.
“The methodology of the analysis includes the quantitative and qualitative evaluation of various tangible and intangible indicators, and the result reveals the same high investment potential that JLL studies reflect. Thus, we expect the evolution of prices in the area to keep its upward trend in the next period as well “, conclude the JLL consultants.
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