GOOD DEVELOPMENT PATH FOR ROMANIAN REAL ESTATE ?
Home prices in Bucharest have gone up 6 percent in the last 12 months and 0.4 percent in the last three months, and even with demand having increased by 22 percent in the last three years, it grew by only 1 percent in the past year, in contrast with Cluj-Napoca, where demand grew 13 percent in the same year.
Romania house price Index
But Bucharest is and will remain the largest and most important residential market in Romania with more than 900.000 houses.
Demand for housing is steadily increasing, which is also confirmed by the increase in demand for building permits – in the first seven months of the year, 24,950 permits for residential buildings were issued, up 7.6 percent over the first seven months of the previous year, according to official data of the National Institute of Statistics (INS).
According to ANCPI (Agentia Nationala de Cadastru si Publicitate Imobiliara) in the first half of the 2018, 40.957 properties were sold in Bucharest and the demand was around 77.000 units (imobiliare.ro dates).
With the increase in demand, a rise in house prices has been seen in Bucharest and in spite of these increases, Romanian is still among the nations with the lowest housing costs in the EU.
The 2019 real estate market is coming with both positive attitudes and precaution in dealing with agents and customers.
On the other hand, analysts estimate that housing prices will stagnate in 2019, or possibly grow slightly, and that by 2022 at the big cities will reach higher values, especially in areas with increased potential for economic development.
Sources : business-review.eu – colliers.com – amcham.ro – imobiliare.ro – focus-economics.com – tradingeconomics.com – romania-insider.com
This publication must not be regarded as offering a complete explanation of the investment tax, legal, and other type of matters that are contained within this publication.
Authors are not responsible for the results of any actions which are undertaken on the basis of the information which are contained within this publication, not for any error in, or omission from, this publication.
The authors expressly disclaim all and any liability and responsability to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.
Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.