CEE REPORT FLIPPING PAGES.pdf

Land values for different areas ZLWKLQ 5RPDQLD ERWK IURPD OHDVHKROG SHUVSHFWLYH EXW DOVR LQ IUHHKROG IURPVPDOO DUHDV RI ODQG to large areas of consolidated land.

NorthWest P: 2,500 - 3,500/ha C: 4-5,000/ha

Lasi

Cluj-Napoca

North East P: 2,750 - 3,500/ha C: 4-5,000/ha

Center P: 2-3,000/ha C: 3,500 - 4,000/ha

West P: 3,250 - 4,000/ha C: 5,000 - 7,000/ha

Brasov

Timisoara

South East P: 3,250 - 4,000/ha C: 5-6,000/ha

South P: 3,250 - 4,000/ha C: 5-6,000/ha

P = Primary market, i.e. purchasing as individual parcels with all mapping/ legal work included. C = Consolidated market i.e. larger blocks of land typically >50ha in largely contiguous areas.

SouthWest P: 2-3,000/ha C: 3,500 - 4,000/ha

Ploiesti

Bucharest

Craiova

Constanta

Climate Rainfall, or lack of it is a major restriction on productive capacity in Romania with levels ranging from 300mm in the very south to 600-700mm in areas of the west and north east. Understanding historic rain data is vital in assessing an areas productive capacity.

Infrastructure Where natural rainfall is irregular or low the ability to invest in irrigation can both mitigate a catastrophe in a dry year and improve yields in a “normal” year. Under Nicolae Ceausescu huge irrigation infrastructure projects were implemented on an area approaching 3m hectares although large areas never actually became operational. Much of the area remains defunct but in parts, largely due toWorld Bank and EU funding - there is now an operating infrastructure. Assessing this as part of a detailed Due Diligence process ahead of acquisition is crucial as whilst EU funding (up to 50% historically) for rehabilitation has been available - both the process of applying for funding, and of actually re-instating systems is complex and capital intensive.

CEE Land Market Brief 2014 09