As is often the case in a property boom, there are many instances of developers that do not match their words with deeds, and the situation in Bucharest is no exception. What is worrying in the case of Romania’s capital is the apparent large scale at which that phenomenon is taking place. The market is crowded with second and third rate developers on the lookout for a quick gain, unscrupulous estate agents, rapacious property flippers and ineffective or even corrupt authorities, making it a toxic mix for the future sustainable development of this large metropolis.
There are also some instances of international developers that have a good reputation in their home and western markets, but eschew the rules in the new EU member states from Eastern Europe. In Romania, the main culprits are, according to the press and everyday observations of the ground, the Spanish companies (see my post on Lipscani quarter urban regeneration) followed by a multitude of other developers that have their headquarters in Mediterranean countries, companies that have a heavy presence in Romania.
I have here an example of an iconic Bucharest building, the old Cismigiu-Palas Hotel, just across the road from the City Hall, which is owned for a number of years by the Spanish developer Hercesa.