Business Forum • 29 November, 2024 at 9:39 AM
The land market in Bucharest and other regional cities is seeing increasing demand from developers of data centers that want to accommodate growing investments in the country's IT&C industry, according to a report by iO Partners.
Romania, with a strategic geographical position in Eastern Europe and lower operational costs compared to Western markets, is becoming a point of interest for investors and data center operators.
Demand is concentrated in major cities such as Bucharest, Cluj-Napoca, Iași, and Timișoara. These regional cities have access to solid infrastructure, specialized workforce, and excellent connectivity to regional internet networks.
Operators prefer land in suburban areas to minimize costs and facilitate future expansions, prioritizing locations with easy access to energy sources and redundant networks. The rapid growth of e-commerce, streaming platforms, and gaming services adds additional pressure on this market, transforming data centers into a strategic asset for real estate developers.
Meanwhile, investments in the transport infrastructure in the wider Bucharest region is opening new opportunities for the land market, especially on the Chitila-Mogoșoaia and Corbeanca-Balotești sections. These are the areas that will se an increase of prices due to higher demand, according to Flavius Pop, Senior Consultant Transaction Advisory at iO Partners.
In Bucharest, developers are looking to buy land plots under 3,000 sqm as construction can be approved without the need of a special Urban Zoning Plan (PUZ). The city also has around 1,580 ha of land covered by former industrial plants that can attract further investment once the city's permitting for new real estate projects is unlocked.