“We kicked off 2024 on a high note, achieving strong sales in the first three months of 2024 that exceeded our targets for the quarter. This achievement is especially significant considering our strategic choice to hold back on launching sales at new developments such as One Cotroceni Towers or second phase of One Lake District, where we expect robust demand. Instead, we concentrated our efforts on enhancing sales in developments that are further along in construction, where we have observed a notable increase in margins due to appreciating sales prices, fully aligned with our pricing strategy. As of March 31st, nearly three-quarters of the units in our developments currently under construction have been sold out. This success highlights the effectiveness of our conservative business model, which emphasizes strong pre-sales during the period of construction," said Victor Capitanu, co-CEO at One United Properties.
As of March 31st, 2024, 73% of the available apartments under development and delivered were sold out. Amounts to be received under contracts concluded with customers as of March 31st, 2024, are €310 million in additional cash by 2025 (€148 million in 2024 and €162 million in 2025). €44 million were collected in Q1 2024 alone.
The commercial division of One United Properties continued to expand, with the headline rent for rental portfolio reaching in Q1 2024, €7 million, a 25% increase compared to Q1 2023 showcasing the result of the strong lease activity from 2023, as reflected by the clients continuing to move into the One Cotroceni Park Phase 1 and Phase 2 offices, which were leased in proportion of 88% and 75%, respectively, as of March 31st, 2024.
“The increasing demand for quality residential housing in Bucharest, driven by changing urban dynamics such as rising dual-income households and a growing appreciation for convenient access to urban amenities, underscores our robust performance in the first three months of 2024 in the residential segment. In parallel, our commercial division is consolidating, as evidenced the year-on-year increase in headline rent, supported by our last year's solid leasing activity. These results not only reflect our ability to adapt to market trends but also highlight our commitment to shaping the future of urban living and commercial real estate in Bucharest. The results from the first quarter of the year set excellent premises for our sales and lease activity in 2024, in line with our recently launched strategy, ONE 2030" said Andrei Diaconescu, co-CEO at One United Properties.
At the beginning of April 2024, One United Properties announced ONE 2030, a transformative strategy to reshape Bucharest's real estate market and showcase the city as a market of choice for international investors. ONE 2030 blueprint targets doubling of One United Properties' residential operations, continued expansion of the group's commercial operations and a strong hospitality division with global lifestyle brand hotels in Bucharest.
As of March 31st, 2024, One United Properties had in ownership or under pre-SPA 273,500 sqm of land locations for further development, with total above-ground gross building rights (GBA) of over 880,100 sqm. All these land plots are currently in the planning phase. The Group estimates the construction of over 6,000 apartments, services for communities, and 163,500 sqm of rental commercial buildings.
