The New Archives Building of Bucharest Chamber of Notaries Public

Starting with November 2017, Vitalis Consulting is involved in a new construction project, as a first collaboration between our company and the Bucharest Chamber of Notaries Public.

The project consists in the development of approx. 3,000 sq. m mixed-use building, located in Cernica town, Ilfov County. The Bucharest Chamber of Notaries Public’ archive will have two different areas: an administrative space with office destination and a space for storage and installation. The construction will also comprise a special designed area for technical areas and shredder.

The 600 sq. m office space, distributed on the ground floor and one more floor, will include features such as: a library room, a conferences room and an exterior terrace.

The archive zone will have four partitions with a total area of 2,000 sq. m on the ground floor and will be designed to comprise shelves with a total height of 5 meters. Technical spaces and shredder covering a total area of approx. 200 sq. m will encompass a waste storage room and a documents reception space.

Within this project Vitalis Consulting will coordinate both the pre-construction phase and the construction phase as well.

During a 5 months period, Vitalis will implement and oversee all of key tools and elements as part of a comprehensive preconstruction phase, i.e. guidance in obtaining the Building Permit; Design Coordination; Budgeting (Initial Cost Planning / forecasting); Program, Progress and Time Management Activities; Tender Phase – coordination and Contractor Procurement.

In the construction phase, Vitalis will provide Project and Cost Management services, as well as Site Inspection and Health and Safety Coordination services.

The new Archive and Office Building will benefit from a first class fire resistant system and will be designed with an energy optimization purpose in order to reduce the long term energy consumption. The development will also comprise an integrated Building Management System for proper maintenance and controlling over the heating and ventilation installation systems.

Currently the project is under pre-construction phase, the key phase to developing the project definition that will lead to successful project delivery, while the official opening date is planned for autumn 2018.

Romania Real Estate Market Report 2017

New supply reached 5-year record levels, registering growth of 11% for the residential market, + 39% for shopping centres new supply, while the area of offices completed in Bucharest was 4 times larger than in 2015.

Shopping centre stock increased by 205,900 sq. m GLA in 2016 at national level, a 5-year highest volume that corresponds to a 39% annual growth. There were opened 3 new schemes ,5 extensions and one modernization (Mercur Craiova). New stock was opened mostly as part of the largest cities, with almost half (49%) being delivered in Bucharest (100,000 sq. m) and 36%across the regional capitals (73,900 sq. m). The rest of the cities have attracted just16%of the openings (32,000 sq. m).

Shopping centre stock reached 3,168,850 sq. m GLA at year-end in Romania, including 129 schemes (31 in the Capital). Existing stock is concentrated in Bucharest (32%) and regional capitals (27%), markets that are provided with large catchment areas and spendable incomes.

Office market saw record-high levels of demand in 2016, coupled with an upward evolution in pipeline activity across the main markets. With a generally stable evolution of vacancies, the rental levels have maintained unchanged.

New buildings with a total of 265,000 sq. m GLA were completed last year in Bucharest, a 7-year highest level. Northern Bucharest concentrated 65% of new deliveries, followed by the west (21%) and the central area (14%).

Almost half of the new supply, representing 121,000 sq. m GLA, was delivered in Barbu Vacarescu. This area has started to develop at a high pace after 2009 and has transformed last year into the largest office area in Bucharest with 371,500 sq. m GLA.

Bucharest’s modern office stock reached 2.44 million sq. m GLA at year-end, out of which 75% is A-class stock. The current office density of 1,295 sq. m / 1,000 inhabitants remains still far from other Central Europe’s Capitals such as Warsaw, Prague and Budapest (2,000-3,000 sq. m/ 1,000 pop.).

Residential development benefitted last year from a good market environment, including growing salaries (+12%), low interest rates (ROBOR 3-month < 1%) and increasing demand. Developers showed an active approach in expanding and starting new projects across the markets that are provided with optimal levels of purchasing power.

New supply increased in most areas, but especially in north-west (+40.4%), south-east (+19.8%), west (+16.9%) and north-east (+16.5%) of Romania. Decreases were registered in Bucharest-Ilfov area (-9.6%) and south-western Romania (-2.4%).Urban area accounted for 53% of the new units delivered last year. Almost the entire new supply was private-financed (98%), with the state involvement being represented by only 1,228 units developed with public financing.


Cluj on the site map of Romania

More than 4,000 buildings were completed in Cluj County in the first three quarters of last year and 40% of them are in rural areas. At a national level Cluj is on the third place in the ranking of the number of construction sites in 2017.

According to the latest statistical data, in the first three quarters of 2017, 4,439 dwellings were built in Cluj County, a higher number than in the same period last year when 4,123 were completed. It is worth mentioning that out of the total, 2721 were built in the urban area and the rest in rural areas, according to data provided by the Regional Statistics Division of Cluj. In the county, 5,221 homes were completed in 2016.

In 2017, the construction market (in all areas, not just the residential one) consisted of 29,207 construction sites, totaling 167.67 billion lei, spread over a total area of ​​94.83 million sq. m. Most of the sites are in Bucharest 2131 (Ilfov: 977) and Timis – 1924, and Cluj is 3rd, in Cluj with 1751 active sites, followed closely by Iasi: 1578. In 2017, apartment seller claims amounted to approximately 16.84%, from 1.247 to 1.457 euros per square meter.

If other figures are tracked, the demand for buildings in Cluj is still very high: the county ranks second in the top of the real estate market: according to the figures published by the National Agency for Cadastre and Real Estate Advertising, most of the sales of real estates registered during January-November 2017 were in Bucharest (73,703), Cluj (40,043), and Ilfov (33,384).  Architects end 2017 in an optimistic note, almost half of architects believe the construction market will be on the rise. The same study shows that only 18% believe that 2018 will show a decline in new construction.


Authorization for Construction of Housing up 26.6 pct in November

The number of construction authorization for residential buildings was up last November by 26.6 percent compared to the same month of the previous year, to 3,383, being driven by the rise in demand in all the country’s regions.

In total, in the first 11 months of last year, the number of construction authorizations increased by 7.6 percent compared to the same period of 2016, up to 38,879.

Out of all the authorizations issued in November, 60.4 percent were in rural localities. Compared to the same month of 2016, there were increases in all the regions of the country.

The largest increases in the number of authorizations, were in Bucharest-Ilfov (+360), North-West (+106), South-East (+90), Centre (+53), South West Oltenia (+49), North East (+27), South-Muntenia (+21) and West (+5).

The Romanian authorities issued 3,383 building permits for new houses in November 2017, 26.6% more compared to the same month of 2016, according to the National Statistics Institute (INS).

Over 60% of the permits were issued in rural areas. In Bucharest-Ilfov area, the number of permits more than doubled compared to November 2016, to 677, as all regions saw increases.