Costin Nistor: Corallis Residential Complex, the best quality-price ratio in northern Bucharest

April 29, 2024by fortadmin

FORTIM Trusted Advisors, a real estate consulting and management company, is the exclusive representative for Corallis, the first residential complex developed by KÉSZ Group in Romania, for which it provides sales & marketing services for the residential segment. The company specializes in construction, having over 41 years of experience, and is making its debut on the capital market with the first residential project as a developer, in the northern part of Bucharest, the Petrom City area. Costin Nistor, Managing Director of Fortim Trusted Advisors, presents the details of the partnership with KÉSZ Group.

What prompted you to engage in this partnership with KÉSZ Romania?

Within Fortim Trusted Advisors, we offer comprehensive services on three real estate pillars: Advisory, Property Management and Residential. We also conduct market research and analyze all the factors that influence the real estate market at European and, implicitly, national level.

The company’s alliance with BNP Paribas Real Estate means access to information on the international economic situation, financial forecasts and market trend analysis. Combined with the analyses we carry out with the advisory team, we have strong arguments for engaging in the partnership with KÉSZ Romania and we believe that it will be not only a well-built complex, but also a well-promoted complex, appreciated by those who understand all its advantages and especially the differentiators.

At the end of 2021, Fortim Trusted Advisors brokered the acquisition of the land on which this project will be developed and for which we provided real estate consulting and market research services to help define an integrated living concept.

From the very beginning, Fortim’s vision has been to position itself as the first and only consulting company offering comprehensive services on all pillars: Advisory, Property and Residential.

The partnership with KÉSZ Romania for the land transaction was the key moment for developing the Residential segment and the associated team. For the Corallis project, we are taking on an extremely important role, which involves consulting, branding, marketing and sales services for this project.

The sales strategy for the Corallis residential project is phased, depending on the construction stages. The entry into the market has as its strong point the best price-quality ratio for new apartments developed in the northern part of the capital, in a living environment that offers a special lifestyle, on the shores of Lake Grivița.

When will the Corallis residential project be launched?

All documentation for the building permit has been submitted and we are awaiting an official response, which could come at any time. We are ready and believe that the interest shown so far by buyers in the Corallis residential complex will be reflected in the rapid sale of the stock reserved for the launch phase of the project.

Once the building permit is issued, we will start sales and buyers will practically be able to sign the pre-contracts. We have already taken some steps in the awareness process for the project and we have very good feedback from those interested.

What does the area where the project is being developed offer more than just a natural setting?

The location benefits from the natural setting of the lake, thus offering future Corallis residents clean air, peace and quiet and a view of the lake, which ensures spectacular sunsets. The location in the northern part of Bucharest, 5-6 minutes by car from the Casa Presei and Herăstrău Park, provides accessibility to the points of interest in the city and the office hubs in the northern area.

Out of a desire to align with the city’s development policy, in relation to various sectors of activity, we have analyzed the area, both at the time of the land transaction and recently, to get to know in detail everything that the area has to offer. In addition to a home, members of a new community need much more, from kindergartens, schools and high schools to leisure facilities, easy access to shopping centers, business centers, the airport and other destinations.

The north-west area has great development potential and, due to the rigors established by the authorities, requires the development of buildings with a lower height, of up to 23 meters. This is an advantage because it will maintain an acceptable height level that will not overload the visual field.

In other countries, new developments involve the developer covering and preparing the necessary infrastructure. In Romania, we still hope that things will happen in a more structured way, according to an agreed-upon general urban plan that maintains a correct proportion between green spaces, recreational spaces and residential buildings.

We are delighted with the concept of the Corallis residential complex, which has ample underground parking, including for visitors, bicycle parking, outdoor areas for yoga and pilates, and also walking paths on the lake esplanade.

We have analyzed all the proximity advantages and consider that Coralilor Street combines the need for peace and quiet and low traffic with accessibility to relevant road junctions.

What should buyers know about the current real estate market?

From the perspective of real estate investments, the best time to buy a property was yesterday. In terms of the prospect of rising property prices, the best time is now.

We are in an election year, which influences both business decisions and citizens’ decisions in many ways. The fact that Bucharest does not yet have an official, updated general urban plan raises questions about new developments and creates concerns for owners who have purchased properties in buildings whose building permits have been challenged, as happened in Sector 2.

From this point of view, it should be mentioned an extremely important aspect, namely that the Corallis project has a PUZ that has already produced legal effects; therefore, there is no risk of it being challenged.

What are property prices like at this time?

The year started surprisingly well, with a high volume of real estate transactions, although the reduced VAT rate increased from 5% to 9%. The first 3 months of 2024 record both an increase in purchases and an increase of over 7% in the average price per square meter in Bucharest compared to the beginning of the year. In the case of new apartments, the average increase exceeds 8.2%. 3-room apartments have a price increase level of 8.8% from January to date.

Analyzing the desire to align with European standards and the increase in the standard of living, I believe that property prices are currently affordable. There are factors that will continue to influence the level of demand upwards, given that the current supply is insufficient, the PUG is still in progress, and this year there are elections, which will delay the decision-making process for the development of new projects. On the other hand, construction conditions are becoming more rigorous, and development in accordance with sustainability standards involves higher costs for developers. The number of new developments remains low, and even more accentuated demand will not only maintain prices but also increase them.

After the second half of the year, there is a possibility that interest rates on bank loans in euros will decrease, which may further increase demand, given that in the capital, the housing supply does not cover the level of demand.

Another relevant factor is the increase in the minimum wage at national level as of June 2024 and later, alignment to the level of the European minimum wage, which represents 50% of the average gross salary in the country. These changes influence purchasing power, which has increased by 40% in recent years and is expected to consolidate, positively influencing the quality of life.

What do you base your market entry strategy on in order to offer the best quality-price ratio?

Our market entry strategy is based on a series of key pillars common in the current partnership, which provide a clear perspective and decision-making for a correct positioning in the market and attracting the target audience.

Among these, I mention: pricing policy based on good planning and management based on a firm business plan and a process optimization plan for construction to keep costs under control, with the objective of a higher level of quality.

In establishing this unique selling point, we rely on the current context of the Bucharest real estate market, the off-plan price advantage, respectively a fair price for the project launch, when buyers rely only on the developer’s credibility and existing references for construction, from the company’s portfolio.

The best quality-price ratio refers to the optimal balance between the selling price of the apartments and the quality of the construction, finishes and facilities offered, which ensures the best value for the financial investment and favors a healthy lifestyle in a natural environment. We thus offer a real value of the product, in relation to everything that the Corallis residential complex has to offer.

The launch offer is indeed the best price in the entire life cycle of the project. Early purchase and the waiting time until project completion also bring benefits. In addition to priority in selecting the positioning – floor, cardinal point and view, the buyer has the advantage of appreciating the value in time. During the construction stages, prices increase, and by the time the apartments are completed, they will be 25% higher. Practically, the off-plan purchase constitutes a 25% saving on the value of the apartment property.

Although it contains a limited stock, the project launch offer comes with a list of attractive prices, which we are looking forward to officially announcing, immediately after obtaining the authorization.

The partnership with KÉSZ România is based on mutual trust and we are sure that the product will be of superior quality, meeting the needs and expectations of buyers. We also have no doubt about the rigor of respecting the timeline of activities, respectively the strictness regarding the deadline for completion of the works.

Who is this project aimed at?

The future residents of the Corallis community are interested in the quality of life, adepts of evolution in terms of technologies and the sustainable perspective of new developments. Lifestyle by the lake is an invitation to the most beautiful life stories, written in a natural environment, under the rays of beautiful sunsets, reflected in the surface of the lake.

The Corallis residential complex includes 226 apartments and will be a sustainable project, built according to the requirements of BREEAM Excellent Certification.

Due to its location on the shore of the lake, the profile of interested customers is self-evident: families at the beginning of their journey, or who want an upgrade in the family lifestyle, people with civic spirit, who have a responsible attitude towards the environment and love sports and time spent outdoors.

Will you be exclusively responsible for Sales & Marketing for the Corallis residential project or are you open to taking on other projects as well?

We are extremely focused on marketing and sales activities for Corallis, because it is a reference project that helps us write our business card on this segment as well, Residential.

We are certainly interested in taking care of KÉSZ România’s future projects, because we are convinced that after they will show on the market what real estate projects fully realized under their signature, the following projects will be sold – at least 20% – from recommendations.

There is potential for developing the partnership, because we also cover Property Management services, and at the completion of the residential complex, it is essential that the level of services is in harmony with the entire concept of Lifestyle by the lake, for a high quality of life.