Tuesday, 14 October 2025
In a CIJ EUROPE Q&A, Bogdan Gubandru, Chief Operating Officer of REDPORT Development, discusses the company’s latest investment — Vitality, a €50 million residential project in Sector 3 of Bucharest. The launch comes at a time when Romania’s capital is witnessing sustained price growth despite a visible slowdown in transaction volumes and tightening financial conditions.
The project will be built in three phases totaling around 500 apartments. Construction of the first phase (145 units) is already underway, featuring low-rise blocks designed for modern urban living. Later stages will add mid-rise buildings with open views of landscaped green areas. Sale prices are expected to average €1,800 per usable square meter, with one-bedroom units priced around €100,000 and two-bedroom units near €130,000.
Q: How are current financing conditions shaping the Vitality development?
Bogdan Gubandru: “For Vitality, we are close to finalizing the banking component of our 60/20/20 financing model, which combines bank loans, shareholder equity, and presales. The positive aspect is that we can choose between several attractive offers. Even in a volatile market, banks remain confident in developers with a proven track record, and this consistency allows us to maintain predictability in execution.”
Sector 3 remains one of Bucharest’s most dynamic residential zones, offering strong public transport links, schools, and recreational amenities. Vitality’s location near the International School of Bucharest and the city ring road enhances its appeal for families and professionals. The project will include a Lidl supermarket, street-facing retail, and green spaces covering more than half of the site. REDPORT plans to manage construction through its own general contractor to ensure quality and cost control.
Q: With prices still rising but fewer transactions, how does REDPORT assess affordability?
Gubandru: “Vitality is designed for a broad local buyer base. The first phase’s limited size keeps supply aligned with demand, ensuring accessibility. Many residents choose the project for its connectivity and natural surroundings — factors that help them make confident, long-term decisions.”
Market data from the Romania Journal show that Bucharest housing prices rose 9.3% year-on-year in H1 2025, reaching €2,108 per sqm in Q2, while transaction volumes dropped by about 10%. Although residential completions increased 9.4% annually, new deliveries in Q2 were 58% lower than a year earlier, suggesting cautious development activity.
Q: Who are your main competitors in this area, and what sets Vitality apart?
Gubandru: “Several projects are active in Sector 3, but our reputation for reliability and attention to detail is what differentiates us. Buyers know we deliver on time and to specification — something that remains a challenge in this market.”
Sustainability is a key element of the development. Vitality incorporates energy-efficient materials, sustainable construction methods, and large landscaped zones aimed at reducing environmental impact.
Q: Will you pursue formal sustainability certification?
Gubandru: “Yes, we are evaluating internationally recognized standards that reflect the project’s energy and environmental performance. This commitment aligns with REDPORT’s philosophy of anticipating future urban needs and delivering long-term value.”
The project also attracts both individual buyers and institutional investors, reflecting Bucharest’s maturing residential market.
Q: Who are your target buyers?
Gubandru: “We see strong interest from both institutional investors and private buyers. Some investors recognize the potential of professionally managed residential stock, while local families and professionals see Vitality as a long-term home. This diversity ensures community balance and financial resilience.”
With Phase 1 under construction and completion targeted for 2029, Vitality reinforces REDPORT’s disciplined expansion strategy in Bucharest’s well-connected districts — a market still supported by strong fundamentals, selective supply, and enduring demand for quality housing.
CIJ EUROPE: As Bucharest’s residential market matures, REDPORT’s Vitality project captures a defining moment in the city’s evolution — where disciplined development, sustainable design, and financial credibility increasingly determine success. While transaction volumes may fluctuate, projects that balance affordability, location, and long-term value continue to attract both buyers and institutional investors.
Vitality reflects this shift: a development grounded not in speculation, but in confidence — signalling that Bucharest’s next growth cycle will be shaped by trust, execution, and the strength of developers who deliver on their promises.
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