Public investments of approximately 2 billion Euros in Constanța County

Public investments of approximately 2 billion Euros in objectives such as the modernization of the railway and access infrastructure in the port of Constanța and Midia area, dredging in Constanța, Midia, and Mangalia, and the widening of the access path to Midia, the construction of some quays, the modernization of the electricity distribution infrastructure, a new terminal for Mihail Kogălniceanu airport that will increase capacity by 50%, two new cardiology and oncology & pediatric hospitals, a new stadium as well as the new Madrid boulevard bring a new perspective to the local real estate market, which will enter a new medium and long term development stage.

One of the important investments is the new Madrid Boulevard, with four lanes, which will connect Tomis Boulevard in the Boreal area with Aurel Vlaicu Boulevard in the Vivo area.  According to IMRA Real Estate, authorized land prices in Constanța to vary between 225-400 Euro/sqm for mixed-use and retail developments, 55-70 Euro for logistics developments, and 350-1,000 Euro/sqm for residential developments, depending on the area.

The residential represents the most dynamic sector of the real estate market in Constanța, attracting investors such as Impact, One United Properties, Gran Via Real Estate, Maurer Imobiliare, Certion, PSE, O.B.A or Toth Developments. According to imobiliare.ro, the sales prices of newly built residential units in Constanța registered a slight decrease of 2% in May 2023, compared to the same period last year, with an average price per square meter of 1,560 Euro + VAT for Constanța and 1,750 Euro + VAT for Mamaia – Năvodari.

As for the rental market, it was influenced by Ukrainian immigrants, with the rent level registering a 19% increase in May 2023 compared to May 2022, according to imobiliare.ro. The PSE Group is one of the most active local residential investors in Constanța with three projects in various stages of development: Lakeside Home in Ovidiu (400 apartments & 41 villas), Southside Residence in Constanța (386 apartments) and Marina Blu in Mamaia (87 apartments), a total of 914 housing units. At the same time, the southern area of ​​the coast is in full effervescence: Certion has 60 mil. Euro projects under development in Olimp-Neptun, projects that will have a significant role in the revitalization of the area and will allow the capitalizationof the seaside experience throughout the year.

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The hotel sector totals 383 units, of which only one is affiliated with an international brand, according to data provided by Est Hospitality to the RPC.

“Romania’s accession to the Schengen Area will have a significant impact on tourist traffic in the Constanța – Mamaia – Mamaia Nord area and we will see many hotels that will be open all year round”, explains Mircea Drăghici, Managing Partner, Est Hospitality.

In recent years, investments in the industrial and logistics sector have laid the foundation stone for the development of the region’s profile. Available land lots, lower labor costs, developed infrastructure and connectivity are strong arguments for Constanța. Globalworth, in partnership with Global Vision and WDP, are the main logistics investors in the area.

Constanța benefits from a modern stock of commercial spaces of 185,000 square meters. The vast majority were built in the last 15 years and have benefited from ongoing refurbishment programmes. The new leisure concepts both in Mamaia and in Neptun & Olimp bring new opportunities for the retail segment.

Constanța is impressive in terms of the size of investments and the diversity of economic sectors. However, it has to catch up with the rest of the regional poles in terms of presence and corporate culture. Even though the city is the fifth largest educational center in Romania in terms of number of students, there is no investment in a modern, class A office building.

Considering its strategic location – the largest port on the Black Sea – and the new investments in infrastructure, Constanța has all the advantages for a new accelerated development both in medium and long term.