Romanian real estate developer Nordis says it has started construction works on a 26.4 million euro development in the central city of Brasov.
Real estate
The announcement comes at an uncertain time for the real estate market which has been affected by the war in neighboring Ukraine, skyrocketing energy prices and knock-on inflation and predicted interest rate hikes.
Nonethless, Colliers real estate investment company said the real estate market in Romania could pass one billion euros this year after several big deals were signed in January before Russia invaded Ukraine.
The complex in Brasov, a wealthy mountain city and tourist destination, will consist of five low-height buildings, with a total of 158 hotel rooms and 43 residential apartments on a plot of 13,000 square meters, according to a press release on Monday.
Hospitality consultants Horwath HTL said the hotel area will have an estimated market value of over 40 million euro, after the opening at the end of 2023, according to Daniel Penciuc, Partner at Nordis Group.
Residential complexNordis recorded sales of 53 million euro over the first eight months of the year, it said in September. Last July, the company announced it was investing 15 million euro in a new residential complex in Bucharest. It also announced its plans to develop a 200-million euro hotel and residential complex in the upscale seaside resort of Mamaia. The Nordis Group ortfolio includes developments such as Nordis Mamaia, Nordis Brasov and Nordis Sinaia, a popular mountain resort which is a two-houur drive from the capital. The company was founded in 2008. InvestmentsReal estate activity was worth 909 million euros, close to pre-pandemic levels in 2021, according to the annual report of Crosspoint Real Estate released in April. The office segment has been the worst hit by the pandemic, and was worth 43% of all real estate investments compated to 85.3% in 2020.
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