Brown & Co have recently carried out research into the latest land market values. In order to sell land in Romania the vendor must publicise the sale of land, stating all the relevant terms, at the City Hall and on the website of the Ministry of Agriculture and the Department for Agriculture and Rural Development (“DADR”). This information must then remain public for no less than 30 days. This formality would appear to restrict free market activity, however it has the benefit of allowing an element of transparency into the marketplace. The majority of sales publicised in the above process will be small scale transactions, as larger deals are usually done via Share Purchase Agreements (SPA’s), which do not fall within the regulations set out above. Brown & Co have captured this data in an attempt to provide a window on the land market development at the end of 2019 across four different regions of Romania.
There are of course limitations to this data. Analysing data where there is a significant number of data points (and motivations for buying and selling land at different price points) will always throw up a number of anomalies, some of which are significant in number. Where possible and deemed appropriate these anomalies have been removed.
Data relating to Ialomita, a county located in south eastern Romania, demonstrates how consolidated blocks of land greater than 20ha are now approximately 110% higher in value on a per hectare basis than 1-2 hectare fragmented parcels.
Brown & Co are organising a study tour in Spring 2020 to facilitate further investigation of the market. For further information on this or this article please contact:
Adam Oliver | firstname.lastname@example.org | M +48 606 418 284
Charlie Fowler | email@example.com |M +48 511 760 321