Procurement for yield mainly translates into the purchase of a building in the project stage in order to resell it in a few months ♦ ANG Luxury Properties mediates monthly transactions between 7 and 12 million euros.
The generation of Romanians who experienced financial success through the IT sector or through investments in bitcoin began to make their presence felt in the luxury segment of the residential market in the Capital, explained Nicoleta Manea, owner of the real estate consulting company ANG Luxury Properties , in the show ZF Invest in Romania !, made in partnership with CEC Bank.
"Yes, we have a new category of Romanian millionaires, a young niche of people who are extremely thoughtful, looking for unique properties in good areas. I can say that from the transactions made this year, a percentage of 10-15%, maybe 20%, are made by this type of people, who work in the IT or bitcoin area ".
ANG Luxury Properties operates in the residential segment in the north of the Capital, focusing mainly on units from the luxury range or the so-called ultralux range, but also on the premium area. The company claims to have more than 2,000 properties in its portfolio.
"Every month we record transactions with a total value of about 7-12 million euros. Last month I sold a property of 2.6 million euros in one week and two of one million euros plus VAT each ”.
She pointed out that in this segment there are several projects started before the pandemic that were completed in 2021, in areas such as Floreasca, Herăstrău or Aviatorilor, but in the market there is a significantly higher demand than supply.
"It is an effervescent market, it was last year in terms of new real estate developments, as well as resale, but in the luxury niche people had a great appetite in terms of property acquisition. (...) It is an area that has recovered quite quickly, there are customers who are always looking for properties in this niche ".
The deficit on the supply side is even more significant in the case of penthouse properties, where Nicoleta Manea considers that the market could absorb another 1,000 units very quickly.
"There are not many projects so the penthouse area is always sought after. Especially since our niche of clients starts at the age of 30, they are young entrepreneurs, businessmen or people in management positions, with incomes of over 10,000 euros, and who want exclusive properties on the top floor, without other neighbors, and for them sight is paramount. "
In terms of yield purchases, the guest pointed to two categories of customers, who target either the premium niche or the luxury niche, in search of investments from which they can get out quite quickly, making a profit.
"We are talking about customers who buy units between 100,000 and 150,000 euros, buy at the project stage, and then sell them after six months when prices increase by 10-15-20%, depending on the area. I have concrete cases in the Herăstrău area. And then the other clients, who buy big apartments for over 500,000 euros, we make it nice and sell it for 800,000 euros ”.
On the other hand, the rental market has experienced a slowdown in demand over the last two years, but now it would be shy to start to see some recovery.
"Last year and at the beginning of this year there were very low demands, but our investors are not discouraged. As offices reopen, businesses have already reopened and there are beginning to be demands. Those classic investors who buy to rent remain in this direction, you rarely take them out of this area because they want security and on the other hand in Romania, the yield is still very good on the residential side ".
Regarding the challenges faced by the luxury segment of the residential market in the north of the Capital, Nicoleta Manea explained that the main problem is related to the low supply.
"Extremely beautiful projects are going to be developed in the luxury area, fortunately here the developers already have their own funds for the completion of the projects and they do not worry much about the increase in the price of construction materials. Of course there are concerns, but not at the level that affects those in the mass-market area. (...) We see some projects that are being developed, they will be ready in 2022-2023 ”.
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