Real estate developer Vastint Romania is working on a mixed-use concept that includes offices and hotel spaces for the former Dâmbovița industrial platform in Bucharest, but the project remains at the concept stage due to market unpredictability. According to statements made by Antoniu Panait, the company’s managing director, during the ZF CEC Bank show, administrative uncertainties are prompting major European developers to redirect investment budgets intended for Romania to other countries.
The land of the former Dâmbovița factory is located next to the Timpuri Noi Square project, where Vastint has already delivered over 52,000 sqm of office space and has another approximately 60,000 sqm under construction. The second phase of the complex, consisting of two buildings with 8 and 15 floors, has its structure completed, and construction works will be finished early next year. Asking rents are EUR 19-20/sqm at Timpuri Noi and EUR 17-18/sqm at Business Garden, given that the first phase of Timpuri Noi is fully occupied.
Permitting blockages have drastically reduced deliveries in the Capital. According to Cushman & Wakefield Echinox data, in 2024 only one office building of 16,000 sqm was completed in Bucharest, and no deliveries are planned for 2025, out of a total stock of 3.43 million sqm. This pause lowered the vacancy rate to 12.1%, the lowest level since the third quarter of 2020, while prime rents in the central business district rose by 5%, reaching EUR 21-22/sqm/month.
Another blocked project in Vastint’s portfolio is the 50-hectare site in Sisești, purchased in 2016 and lacking a building permit. The urban plan proposes a phased development over 15-20 years, featuring green spaces, dedicated plots for public and private schools, a police station, commercial areas, and sports facilities, with no natural gas in residential units. Vastint’s director warns that the lack of new housing units increases living costs, affecting the city’s competitiveness and encouraging the brain drain.
Frequently Asked Questions
Why is Vastint delaying its project on the Dâmbovița platform?
The project remains in the concept phase due to administrative unpredictability and permitting delays in Bucharest, which are causing developers to pause or redirect investments.
What is the current status of Vastint’s Timpuri Noi Square development?
Phase one is fully occupied, while phase two—comprising two buildings of 8 and 15 floors totaling around 60,000 sqm—has its structure completed and is set for completion in early 2025.
How has the authorization bottleneck affected the Bucharest office market?
Only 16,000 sqm of office space was delivered in 2024, with zero deliveries planned for 2025, causing vacancy rates to drop to 12.1% and prime rents to increase to EUR 21-22/sqm/month.