Dow Jones, Nasdaq, or S&P 500 stock market indices surpassed by an IMPACT Investment
Back to blogIn a world where investors are constantly seeking growth and return opportunities, a remarkable project developed by IMPACT Developer & Contractor stands out. This is GREENFIELD Băneasa, a residential neighborhood in the northern part of the capital. Perhaps the most well-known new neighborhood in Bucharest. Recent data shows that it has offered those who bought a property here, an exceptional return in the last 5 years, compared to international stock indices such as the Dow Jones, Nasdaq, or S&P 500.
IMPACT Project Returns vs. Global Stock Indices
While many global markets have been dominated by volatility and uncertainty in recent years, projects developed by IMPACT, taking GREENFIELD Băneasa as an example (it has a history of sustainable development), have remained a point of stability and profitability for investors. Here's how the average annual return for an apartment owner in the IMPACT, GREENFIELD Băneasa project has unfolded over the last 5 years, compared to stock market indices:
- IMPACT – GREENFIELD Băneasa: With an average annual return of 35%, buyers at GREENFIELD Băneasa have achieved a total return of 75% over the past 5 years. This is all the more impressive given the stability and predictability of the real estate market compared to stock market indices.
- Nasdaq It had an average annual return of 27% and a total return of 34%.
- Dow Jones: It had an average annual return of 27% and a total return of 71%.
- S&P 500: It recorded an average annual return of 31% and a total return of 57%.
It is evident that the project developed by IMPACT has not only withstood the turmoil of global markets but has also far surpassed the returns achieved in other types of investments.
Reduced Taxes in Romania: An Undeniable Advantage
The low property taxes in Romania, when compared to other European capitals and Central and Eastern European (CEE) countries, offer a significant advantage to residential property investors. According to data provided by Global Property Guide, Romania holds a competitive position, featuring one of the lowest property taxation levels in the region. This favorable fiscal approach not only stimulates real estate investments but also contributes to increasing their net returns, making Romania, and by extension, GREENFIELD Băneasa, an attractive destination for investments with significant growth potential.
One of the reasons that explains this remarkable performance in projects built by IMPACT, like the current example with GREENFIELD Băneasa, is the low level of taxes in Romania compared to other European capitals. Low taxes not only attract investor buyers but also support the net return on their investments.
With a net return of 56% over five years, GREENFIELD Băneasa stands out as a truly attractive investment destination, as the low taxes allow buyers—investors—to retain a significant portion of their profits.
Premise: If a property is purchased in 2017, rental income is registered, and it is sold after 5 years of renting.
Raw Data Source: Global Property Guide and Eurostat
Gross Yield = Sales Value – Purchase Value + Rental Income
Net Yield = Gross Yield – Total Fees and Taxes
There are European capitals with interesting gross yields, but when you subtract taxes and duties, you get a rather small net yield. This is why an important indicator for real estate investors is this net yield, and obviously, a low level of property taxes and duties contributes to this yield.
Conclusion
In conclusion, projects developed by IMPACT have proven to be a truly exceptional investment opportunity over the past 5 years. GREENFIELD Băneasa was included in this case study due to its history. All types of apartments in GREENFIELD Băneasa have doubled in value over the last 10 years, so regardless of your position as a resident or an investor in these apartments, you would have come out ahead. Residents look at the appreciation of their apartment's value, while investors (those who buy, rent out, and eventually sell) track and calculate gross, but especially net returns. With its robust yield and low taxes in Romania, this residential neighborhood in Bucharest offers investment opportunities that rival the largest global markets. Looking at the past, investors can be confident that choosing to invest in IMPACT's projects can be an extremely profitable long-term decision.
In a world full of uncertainty, residential projects developed by IMPACT shine in the investment landscape and are surely worth the attention of those seeking attractive returns and medium- to long-term growth opportunities.
About IMPACT Developer & Contractor SA
IMPACT, the longest-standing residential real estate developer, with 32 years of activity on the Romanian market, has distinguished itself throughout its history as an innovative company, a trendsetter in real estate, the promoter of the residential complex concept, and the first real estate company listed on the Bucharest Stock Exchange over 26 years ago.
Through its completed projects, IMPACT has created unique living perspectives, leading in the development of large residential communities, with over 1,500 residents. GREENFIELD Băneasa, with over 17,000 residents upon completion, is its most ambitious project to date, built in a spectacular natural setting offered by the over 900 hectares of surrounding forest, while LUXURIA Residence, which will accommodate over 1,500 residents, is the project that sets new standards in terms of sustainability for IMPACT developments, being the first residential complex in the country to be BREEAM Excellent certified.
Since its founding, IMPACT has completed 19 projects where over 12,000 residents live today.
IMPACT is a company recognized nationally and internationally. This is evidenced by the over 50 awards obtained over time, the most recent being ”Most sustainable real estate developer of the year 2022”obtained at the Financial Intelligence Awards Gala, the award”Developer of the Year 2022”Romanian Property Awards” and ”Best In Business" at the Financial Market Awards Gala.
IMPACT holds a valuable land portfolio with development potential for at least 5 more projects: Greenfield Băneasa– Bucharest (new phases), BOREAL PLUS – Constanța (new phases), GREENFIELD COPOU – Iași, ARIA VERDI – Bucharest, and GREENFIELD WEST – Bucharest, which have an estimated market value of EUR 1.5 billion.
About GREENFIELD Băneasa
GREENFIELD Băneasa is a large-scale residential project with over 7,000 homes and over 17,000 residents upon its completion in 2028, located in Sector 1 of the Capital, built sustainably for a better urban future. The project is in its fourth phase of development out of six planned. Since 2007, the start year of works for the first development phase, until now, GREENFIELD Băneasa has experienced sustainable development, bringing new infrastructure and new facilities to the community: two private parks, numerous green spaces, playgrounds, convenience stores, Avenor campus with kindergarten, school, and high school, GREENFIELD Plaza shopping center, and the Wellness Club by GREENFIELD sports center, public transport. As the project progresses and approaches maturity, other new facilities are being added, such as a state school and kindergarten, a church, a medical clinic, a nursery, infrastructure, and new access roads.