Focus on regional development: IMPACT returns to the real estate market in Constanța
Constanţa is a city with increased economic potential due to its excellent positioning that favours trade and tourism and is gradually becoming one of the emerging development poles in the residential segment in Romania.
More than 1,600 homes were under development in Constanta, in several investment projects that include the construction of several thousand housing units in the coming years.
Approximately 1,500 new homes are completed each year on the seaside real estate market, a figure that places Constanța in second place at the regional level in terms of investments in large-scale residential complexes.
The latest data from the National Institute of Statistics claim that in 2018, 1,609 new homes were delivered to the municipality, raising the number of apartment stocks to 133,815 units.
House prices indicated stability compared to the situation in other regional cities with relevant dynamics. One of the explanations is the analysis of the actual housing stock in Constanţa. The stock of old apartments dominates the supply of housing in the city, but this situation may change in the coming years, once real estate developers complete new residential complexes with apartments and villas, built to higher standards.
In June of this year, the housing units on the market registered an average price of 1,240 euros per square meter, slightly higher than the same period of 2019, when the owners requested 1,130 euros / sqm, according to the data on the website. ul Imobiliare.ro. During this time, the prices of new housing was increased by 12.2%, and in the case of the old housing stock, the increase was only 8.5%. Real estate experts believe that the upward trend will continue in the next period, as a result, the end of 2020 is conducive to the purchase of new apartments. Consumers have a growing interest in homes that offer a better standard of living, in the context of the pandemic and spending as much time as possible at home.
From a financial and investment point of view, the best time to buy a home is in the project phase, when the price is much better. Risks are eliminated if the choice involves a reliable developer or builder. After completion and in the following years, an apartment or house purchased in the project phase will be worth at least 30% more.
Boreal, the first investment of Impact in Constanţa
Impact Developer & Contractor’s interest in the seaside town was expressed more than 10 years ago, when he built the first residential project in Constanța: the BOREAL house complex.
Located in the northern part of the city, Boreal has become home to 150 families interested in a quiet area, close to the city facilities and close to the natural setting offered by Lake Siutghiol and the sea.
After 10 years, Impact returns to Constanța to expand the initial project with Boreal PLUS, a housing mix concept with 691 units, comprising 9 blocks with 673 apartments and 18 luxury villas.
Boreal PLUS will be developed in four stages, on a plot of land with an area of 64,440 square meters, in a location with good connectivity to points of interest. Accessibility to transport infrastructure, kindergarten, Kaufland hypermarket in the immediate vicinity, playground for children, sports field and commercial spaces – all are benefits for future residents.
65 million euros is the amount invested in the Boreal PLUS project, Impact being motivated to use all the experience of almost 30 years of activity, to offer the people of Constanta a high-quality project.
The project is developed respecting the sustainability policy implemented by Impact Developer & Contractor in all the projects it carries out at national level. As a result, the new complex will have an integrated waste collection and management system, energy-efficient lighting and specialized infrastructure for wastewater recovery and management.
At the design level, Boreal Plus is created to integrate harmoniously with the environment with the help of exterior finishes and materials that create a minimalist ecosystem with straight, clean lines, without excessive details.
Developed with carefully selected materials and efficient technical solutions, Boreal Plus aims to become the new standard in housing in Constanta as soon as possible, the first 210 apartments will be delivered in the second half of 2021.
Constanța Nord, accelerated development area
The Impact decision to extend the first project with Boreal PLUS is also motivated by the increased development potential of the area, where there is not yet a premium residential complex, of superior quality. The residential complex is located in the vicinity of DN2A, just 15 minutes away from the center of Constanta, but also from the A4 motorway. Currently, several shopping centers and educational units are opened nearby, relevant facilities for future tenants.
In terms of rental prices, the area has a higher cost than other neighbourhoods in Constanța.
In the area, the average rent price for a one-room apartment is 250 euros, the market average being 180 euros. In the case of two- and three-room apartments, the rental price varies between 350 and 400 euros, compared to the city average, where the price starts at 260 and can increase even above 350 euros, depending on the facilities.
Those interested in investing in a home for later rental, should note that in the area, it can achieve a yield of at least 6.5%, a superior indicator to other investment instruments on the national financial market.
In the coming years, the residential market in Constanta will increase, compared to one of the relevant indicators for industry.
While in Bucharest, the number of people registered at home is 2.4, in Constanta this indicator is 2.5, according to statistics. As a comparison, in Craiova and Iaşi, this indicator is 2.7, respectively 2.8. In conclusion, there is enough space in the residential market for quality projects, which make the difference through good location and diversified facilities for residents.
At the macro level, the economy of Constanța has the potential to support the growth of the residential sector in the near future, precisely due to the mix of value-producing activities. At the local level, 22,000 companies are registered active in various fields: from offshore oil production and refining, to port activities, tourism and agriculture.
Statistical data indicate that the average regional wage is expected to reach 600 euros in 2021, while the growth potential of the local economy exceeds 5%.
Impact invests pertinently in Constanța, certainly there is interest in residential products built to Western standards, which target BREEAM energy efficiency standards. Thus, the company contributes to the development of a vibrant economic environment in a city of strategic importance internationally.