bucharest has witnessed a surge in land prices over the last couple of years owing to high demand and the relative scarcity of large plots in central and semi-central regions of the city. In a move to rectify the land shortage, a recent trend involves clearing sites that once housed communist-era factories to make way for major real estate developments.

One of the largest real estate projects in Bucharest, Sema Parc, is being developed by River Invest on the land-plot of the former Semanatoarea factory, owned by businessman Ion Radulea and located on the Dambovita River. The project will offer a total of some 364,000 square meters of class A and A+ space that will include offices and residential and commercial areas.

The Romanian real estate market has grown at an extremely rapid pace during the past few years, as a wide array of foreign investors have been attracted by the high investment yields Romania offers in comparison to other central and western European markets.

Mr. Radulea noted that, given the high demand among real estate investors interested in setting up shop in Romania, the current boom will most likely continue for another five or six years until the market reaches saturation point. He added that once the Pan-European Transport Corridor IV opens “there will be an explosion because the Black Sea harbor of Constanta will be connected to the heart of the continent.”

The northern branch of Corridor IV, originating in Germany, runs from the western city of Arad via Bucharest to Constanta.