Lucian Azoiţei, real estate developer and shareholder of Forty Management & Investments, is currently running a project of 200 apartments in the Titan Park area, in which he has already sold 42 in the first month. This is happening in a real estate market in which there is no argument that will lead to a collapse at this moment, said Lucian Azoiţei yesterday in the ZF Live business broadcast.
Azoiţei says that the rent evolution is very important for the real estate market.
„An essential argument in my opinion is that today, the market for rents, which is a market made up of demand and supply, in which there is no external influence, is 20% higher than the bank rates attached to the same products. As long as the purchase of a product requires a rate that is 20% lower than the demand for the same product, we cannot speak of a possible crisis.”
The project in the Titan Park area has a commercial area and a running track on the block. The value of the project is 22 million euros. The sales started a month ago and we already have 42 sale-purchase contracts signed, with an advance of 15%. „On average, the price per square meter will be 1,150 euros. A two-room apartment will have a price of around 75,000 euros, and the three-room apartment, 95-97,000 euros. There are only 2 Penthouses and have been sold in the meantime. They cost 180,000 euros and were sold to doctors in the area.”
„Think about that: we crossed the 25% sales threshold; we also sold the commercial space with 3.3 million euros to an investment fund. We have a signed agreement, when we deliver it, we receive the money. The fund is focused on rent producing assets. They pay us somewhere at 8.3%, a percent specific to office buildings says Azoiţei.
„The old apartments in the neighborhood are sold at 1,150 euros per square meter. We offer a new, modern product, with all the standards met by the 2019 criterias, at the same price as an apartment in a 40-year-old block.”