Constanta

Located on the Black Sea frontline, in Mamaia Nord, Axxis Nova Resort & Spa represents the first integrated concept on Romanian seaside combining residential and tourism with retail amenities and a Blue Flag beach.

• Mix of apartments – studios, 1- & 2-bedroom units and penthouses;

• Hotel services – 5*, SPA, indoor & outdoor heated pools, fitness center, conference center, gym, restaurants, coffee shops, indoor playground, nonstop casino;

• Facilities & amenities -Blue Flag beach, exotic gardens, patios, promenade area, sports fields, bars, art gallery, library, pet hotel with dedicated parc, belvedere tower, working hub;

• Development phases – six residential buildings and one 5* hotel, with a gross development value of 300 million EUR. The first phase – Madrid building is to be finalized by the end of 2024, while the Axxis Beach is already functional;

• Developer – Grup Petrol Marin;

• Architect – Proiect Unique Invest;

• General contractor – Maritimo Development;

• Financing bank – Garanti Bank.

Constanta, one of Romania’s main touristic destinations, continues to attract the interest of hotel investors and operators, but still flies under the radar, as compared with other regions.

Based on the supply of hotel rooms, Constanta city (including Mamaia) can attract demand for medium quality hotels and services. This trend is about to change in the next 3-4 years due to economic shifts in the area (NATO military base and Schengen space for Constanta port). The new highway (Constanta – Olimp) connecting with the southern part of the seaside is also expected to bring new opportunities for tourism developments.

• 69% of total number of rooms are ranked to 1*, 2* and 3*;

• only 300 rooms are ranked to a hotel operator (ie Ramada and Continental Hotels) which represent less than 3% from total number of rooms;

• increase in the number of arrivals +3.4% and overnights +6% in hotels for 2023 as compared with 2022;

• major decrease compared to 2022 for arrivals -9.90% and overnights – 7.9% in apartments for rent because of offer excess;

• new international brands such as Crowne Plaza & Radisson enter Constanta market;

• 1,000 hotel rooms internationally affiliated are under development in five hotels.

“With the inauguration of the new hotels, in the following four years the number of rooms will increase by 8.3% Major hotels operators will also enter the market giving a vote of confidence for the Romanian seaside.” 

The historically high traffic posted in 2023 – over 90 million tons of cargo – provided further incentive to central authorities to upgrade existing facilities.

The main goods shipped through Constanta are cereals (38% of the traffic), seeds, iron minerals, steel cast, oil products, and fertilizers.

Most recently, the Ministry of Transportation announced massive 1 billion EUR investments for Constanta Sud, meant to upgrade Wharfs III S and IV S and add 17 new deep-sea berths, 155 ha of operating area, and 36 ha of logistics platforms.

Infrastructure investments for the port sum up to 1.5 billion EUR. The “Administration of the Sea Ports” National Company recently organized a 108 million EUR bid to upgrade the road access points to the port. Furthermore, there is a schedule to upgrade rail infrastructure and deploy new trains. For financing, the Government is reaching out to both internal and EU funding and pursues PPPs with Middle Eastern and South Korean investors, to enhance global trade partnerships and unlock new commerce routes.

Authorities of Constanta Port announced they are working on the “Green Port Master Plan”, taking in consideration the requirements of the Alternative Fuel Infrastructure Regulation (AFIR) and FuelEU maritime regulation, proposed by the European Commission.

The PIONEERS project, which takes place over five years (2021-2026), has received funding under the HORIZON 2020 program, the Green Ports as Multimodal Hubs for Sustainable and Smart Mobility axis, which aims to support ports to meet the European Commission’s requirements on transition to climate neutrality by 2050.

Romania’s PM, Marcel Ciolacu met in April 2024 his Quatar counterpart, Seik Mohammed bin Abdulrahman bin Jassim Al Thani, the Romanian official declaring a target for Romania to become Quatar investments bridge towards European Union, with projects worth of 15 billion EUR under analysis.

After the 12% increase in 2022 over 2021, 2023 brought another record high for the annual traffic, reaching 92,5 million tons, a 22.5% increase over 2022.

Maritime traffic increased by 18% YOY, up to 71 million tons, and river traffic increased by 40% compared to the previous year, reaching 22 million tons.

Cereals remained at the top of traffic increases, with more than 50%, surpassing 36 million tons in 2023, compared to 2022 when 24 million tons were recorded.

Regarding Ukraine, the total traffic of goods was 25 million tons in 2023. Ukrainian grains that transited the port of Constanta represented more than 14 million tons.

Following the success of the first phase of the complex, One United Properties has obtained the construction permit for Phase 2 of the One Mamaia Nord complex, with a total built area of approximately 17,000 square meters, currently under development.

One Mamaia Nord currently consists of two residential buildings bordering the Black Sea beach: Phase 1 completed in 2022 and Phase 2 under development, with estimated delivery for Q2 2025.

Both buildings are constructed according to similar criteria and share an architectural unity, with dual orientation: the main one facing the sea and the subordinate one facing the access and the lake.

The apartments have frontal or lateral sea views and a free height in rooms of about three meters, premium finishes, natural stone, and glass closures on the terraces, with permanent security and video surveillance.

This development benefits from an elegant contemporary design, with high-quality finishes and all the advantages of green buildings, such as: durable materials, energy efficiency, low-pollution installation systems, excellent indoor environmental quality.

Following major regeneration projects in Iasi, Timisoara and Cluj-Napoca, real estate investor Iulius works on a complex development in Constanta. The project is based on a partnership between the investor and Oil Terminal on a 38-hectare plot of land centrally located, close to the port and train station.

The land used to house storage areas for petroleum products and remained unused for the past 10 years, because the previous activity impacted the quality of life in the nearby residential areas. Iulius has taken on the greening process, one considered essential and obviously beneficial for the entire community.

The main construction activity in the sector was driven by local companies, which opened or extended a series of production facilities (in consumer goods, construction) and DP World. The newly delivered RO-RO facility integrated with a logistics hub in Aiud to facilitate transportation for Romanian exporters producing in the West side of the country and the new warehousing capacity were the main developments in the county in terms of industrial and logistics. The construction of a logistics platform of 110,000 sqm was also started, an investment of 50 million Euro, which will be completed next year. “Romania is a dynamic economy and well positioned to benefit from the growth of the nearshoring sector and production,” said Rashid Abdulla, CEO and Managing Director, DP World Europe at a recent company event.

The city attracted the attention of the investor due to the excellent and unique connectivity: by sea, land and air. The concept which combines numerous and varied functions within the same project will offer multiple perspectives to the inhabitants of Constanța, but also to tourists or the business environment, who will have a new interest area in the city.

The Constanta logistics market is still pending solid demand in order to grow and match the economic prospects the county is promising.

The stock of modern warehousing remained similar to 2022, close to 150,000 sq m. The main development – Constanta Business Park is conserving efforts pending more consistent tenant demand, whereas the new development announced by Olympian Parks is under the permitting approval process, expected to start this year. WDP did not announce any new developments at its two sites – in Agigea and Mihail Kogalniceanu.

The main construction activity in the sector was driven by local companies, which opened or extended a series of production facilities (in consumer goods, construction) and DP World. The newly delivered RO-RO facility integrated with a logistics hub in Aiud to facilitate transportation for Romanian exporters producing in the West side of the country and the new warehousing capacity were the main developments in the county in terms of industrial and logistics. The construction of a logistics platform of 110,000 sqm was also started, an investment of 50 million Euro, which will be completed next year. “Romania is a dynamic economy and well positioned to benefit from the growth of the nearshoring sector and production,” said Rashid Abdulla, CEO and Managing Director, DP World Europe at a recent company event.

Accession to the Schengen Area, the decrease of insurance costs for naval ships transiting the Black Sea, as well as diversification of global commerce routes should boost the logistics sector development in Constanta.

The prime asking rent for modern warehousing in Constanta is 4.3 EUR/sqm.

Constanta continues its journey as a leader region for Romania, enhancing its strategic role at the Black Sea. The 775,000-population county is a critical place on the map where double-digit billion EUR private and public investments are pursued for the next decade. Energy, agriculture, maritime transportation, and security are its main strengths, along with being one of the main tourist destinations of the country.

In terms of infrastructure, developments include both government-led initiatives and the private sector. DP World, one of the operators of the Constanta Port completed a 65 million EUR investment. The Ministry of Transportation announced massive 1 bn EUR investments for Constanta Sud, meant to upgrade Wharfs III S and IV S and add 17 new deep-sea berths, 155 ha of operating area, and 36 ha of logistics platforms.

The strengthening of Constanta as a security provider for the entire Black Sea region continues through outstanding new investments in a mini-city near the Mihail Kogalniceanu military base. Works for the project spanning over 2,800 ha broke ground this year. At maturity, the estimated 2.5 billion EUR mini-city will insure housing for up to 10,000 security officers and families, and educational and healthcare infrastructure. This shall be one of the most significant NATO military bases in Europe.

Along with being one of the key ports at the Black Sea and playing a tremendous role in the defence of Europe, Constanta is one of the most impressive energy hubs in Europe. In addition to previously announced 7 billion EUR investments in extending the Cernavoda Nuclear Power Plant capacity by two reactors (extra 1412 MW installed power), the most awaited development is Neptun Deep. A 4 billion EUR joint venture between Romgaz and OMV, expects to receive the building permit for the operation of the off-shore facility that will transform Romania into the largest gas producer in Europe.

Another key development for Romania’s energy leadership is the recent regulation regarding the off-shore law. According to the World Bank, Romania can produce 76GW per year through off-shore wind parks. Legal clarity incentivizes investors to deploy capital in a predictable environment. Along with neighbouring Tulcea, Constanta is a home base for on-shore wind parks. Only in Q1 2023-Q1 2024 more than 1750 MW were approved by Transelectrica, along with further strengthening of the existing photovoltaic parks base. Constanta plays a strategic role in green and fossil fuel production and processing, export, and import of energy and petrochemical products.

Moreover, the 565,000 ha of agricultural land place Constanta at the top of the charts in terms of performance. In 2022, the total output of agricultural production and services exceeded 90 billion EUR, based on livestock, poultry, cereal, vegetables, seeds, fruits, and wine farms. More than 130 companies lead agricultural development, some of the most notable companies being Ameropa, Agricola, JD Agro, and Ostrov Winey. Public investments in the irrigation system helped producers manage crops during dry seasons.

Tourism is one of the economic pillars of Constanta, with 1,574,064 visits in 2023. In addition to the beach appeal, visitors are drawn in by cultural events such as rock and folk concerts, and major festivals (Neversea).  The upcoming 30 km of Techirghiol Alternative Route highway to be finalized in 2027 shall serve two major scopes. First, economic contribution to the tourism sector, as it eases traffic during peak summer months. Secondly, it shall ensure a speedy plug-in to the road infrastructure in Bulgaria and the connection to the Greek Alexandroupolis port – a key node for defense infrastructure delivery to Romania.

Other notable public investments in Constanta are the new Water Heating Plant (125 million EUR, secured through NRRP funds), multi-sports arena with 5,000 seats (70% completed, to be delivered in 2024),  the new Gheorghe Hagi stadium (18,000 seats, 80 million EUR financing memorandum approved), 7 million EUR upgrades to the Clinical Emergency Hospital (secured through NRRP), and a c.a. 90 million EUR new “Mother and Child” building backed by EIB. Recently completed improvements at the Mihail Kogalniceanu Airport led to a 44% increase in traffic, growth expected to continue as the full investment schedule rolls out.

The private sector announced significant development programs as well. Iulius Group revealed partnership for the 38-ha land with Oil Terminal for a large mixed-use development, while other residential and hotels investments are undergoing.

The dynamics of Constanta County led to a low unemployment rate of 2.1% and a growing average net income (933 EUR per month).

While still under the radar for some large real estate investors, due to massive investments in energy, security and infrastructure we consider Constanta an appealing destination for medium- and long-term perspectives.