Haggag Europe Sells 231 Bucharest Apartments in Five Months

Haggag Europe, a real estate company, has reported strong sales in the Bucharest housing market, selling 231 apartments across three projects within the last five months for approximately 120 million shekels. This translates to an average sale price of about 520,000 shekels per apartment. The company's flagship project, Pipera Lake in northern Bucharest, accounted for the majority of these sales, with 157 units sold from its third phase, which launched in the second quarter. An additional 60 apartments were sold from the second phase of Pipera Lake, and 14 units were sold from the Obor project. Cumulatively, over 650 apartments have been sold across these three projects, totaling more than 300 million shekels.

These sales figures are notable given a general slowdown in the Bucharest real estate market. In the first quarter of 2026, residential transactions in Bucharest decreased by approximately 16.6% compared to the same period last year, with the adjacent Ilfov region seeing a 7.7% drop. Despite the lower transaction volume, the average sale price per square meter in Bucharest continued to rise, reaching about 2,309 euros.

Pipera Lake remains the company's primary focus, comprising over 1,400 apartments across three phases. The first phase, consisting of 435 units, has already been fully occupied and sold. The second phase includes 455 units. The Pipera area is particularly attractive to employees in the technology and service sectors in northern Bucharest, leading to higher-than-average apartment prices, which benefits Haggag Europe's sales performance.

Haggag Europe estimates a gross profit of approximately 168 million shekels (about 48 million euros) from the second and third phases of Pipera Lake combined. While sales are robust, the key challenge for investors is the pace at which these sales agreements translate into reported revenues and profits. In the second quarter of 2026, Haggag Europe recorded revenues of about 24.3 million shekels and a gross profit of 5.5 million shekels, alongside an operating loss of 6.9 million shekels, highlighting the gap between sales activity and accounting recognition.

The company's stock has performed exceptionally well, rising over 55% year-to-date as of early September, reaching a market capitalization of approximately 1.06 billion shekels. This growth occurred even before the latest sales figures were released. Haggag Europe is also expanding into data centers and energy storage in Romania, with a potential data center deal valued at up to 67.5 million euros. In May, Menora acquired a 5.5% stake in the company for 55 million shekels, strengthening its institutional investor base. The company's continued sales momentum in Pipera provides a solid foundation as it diversifies into capital-intensive sectors.