Solution of residential developers: small projects with comprehensive targets

“We didn’t seek for large projects, with hundred apartments”

Axa Estate Studio provides real estate advisory and together with Axa Concept (developer and funder of the projects), Atelier Arhitectura AXA (design), AXA Development (general entrepreneur), AXA Interiors (importer of construction materials) and AXA Investment (financial advisory) make up AXA Group.

At the end of this year, Axa Group will deliver Saphire Residence project, a 7.8 million euro investment, located in northern Bucharest, near Herastrau park, that comprises 18 apartments. The group’s plans include the residential compound Ambra Residence, near Baneasa forest and an office building in Obor area.

“We have already received the construction permit and we will start the works in March, the investment amounting about 6.2 mln euros. Still in spring, we plan on commencing an office building to deliver it by end-2010” Anca Otobicu (photo) told Wall-Street.

For the office building, Jasp Business Center, the plan involves an 11.000-sqm gross area, on 11 stories, the investment hovering around16 million euros. The group has already received the construction permit.

As for the moment chosen to start the works, Anca Otobicu says there was no rule than can ensure the success. It always depends on the project. As Anca Otobicu notes, the size and comprehensive targets of the projects were the key-ingredients that helped the company overcome the drawbacks arising in a frozen market.

“Our projects had a well-structured target, we knew exactly from the start what type of clients we are addressing to and we took into consideration their financial possibilities, what they wish and afford. We didn’t seek for large projects with hundred apartments, but we focused on small ones, with a well-determined target public”, said the director of Axa Estate.

The company sold 18 apartments in Saphire Residence so far, the last contract being concluded in December 2008, and now is negotiating for two more apartments. The company’s target consists of persons with higher-than-average earnings.

The first step in the promotion campaign was a website dedicated to Saphire Residence. The strategy consisted in informing the public on the two projects and the differences between the two.

“The website was launched after the real estate fair in fall we attended, and proved to be a useful tool. As for the efficiency of real estate fairs, you don’t go anymore for sale. You go for brand awareness now”, said Anca Otobicu.

As promotion medium, the year, the company will focus on outdoor and on visual redirection, designed to bring the client closer. As for Ambra Residence, the target eyes persons with average earnings, for which the apartments have lower surfaces, the largest one measuring 160 sqm.