Over 25,000 homes are under construction and expected to be delivered this year in the main regional residential markets in Romania, according to the Residential Market Beat 2017 report authored by the Coldwell Banker Romania real-estate consultancy company.
The Bucharest-Ilfov region is the largest residential market in Romania, where approximately 12,000 homes are currently under development and set to be delivered this year provided developers respect the construction rhythms announced.
Most of them, namely 7,200 units (59.5 percent), represent mass market homes – namely residential projects located on city outskirts or inside the city’s large neighbourhoods – whose surface areas are smaller or comparatively similar to those of old homes and which are included in projects that offer a limited number of facilities.
This year also confirms the consolidation of the middle market segment, approximately 4,500 homes included in residential projects featuring good locations – within Bucharest’s middle ring, in the city’s northern area or close to the large business centres – set to be delivered in 2017. These projects consist of homes with surface areas similar to or larger than those of old apartments, with above-average finishing works and with varied facilities.
Additionally, around 500 premium and luxury homes are set to be delivered this year in and around Bucharest. In 2016, 10,022 homes were completed in the Bucharest-Ilfov region, according to the National Statistics Institute.
Average prices range from 800 to 1,000 euros per square metre on the mass market segment, from 1,200 to 1,700 euros per square metre on the middle market segment, and surpass 2,000 euros per square metre on the premium segment.
The second-largest residential market in Romania is Cluj-Napoca and its outskirts, particularly Floresti. Coldwell Banker Romania data show that around 4,200 homes will be delivered at regional level in 2017, most (80 percent) of the homes under development in Cluj-Napoca being middle market homes, while those under development in Floresti are especially mass market homes. The new market offer is registering very good sale rhythms, with an overall absorption rate that surpasses 90 percent by the time the projects are delivered.
In recent years, Sibiu has registered significant development on the residential segment, thanks to sustained demand coming as a result of the regional development of auto parts manufacturing, industrial and retail sectors. Thus, approximately 2,900 units are expected to be finalised this year in the region, according to Coldwell Banker Romania data, the Turnisor area representing the city’s most important development pole.
Around 2,100 residential units are expected to be finalised in Brasov and its outskirts in 2017, up by 10.5 percent year-on-year. Most of the new market offer consists of mass market projects, namely 65 percent of it, followed by the middle market segment with a market share of 35 percent.
Just like in Cluj-Napoca, the new market offer in Brasov is registering a very good sale rhythm, with an overall absorption rate of over 90 percent by the time the projects are delivered. The average price stood at 925 euros per square metre last year, a 5 percent hike to approximately 970 euros per square metre being estimated for this year, according to Coldwell Banker data. The most important development areas located near Brasov are Sanpetru, Sacele, Cristian and Ghimbav.
Constanta represents one of the largest residential markets in Romania, with over 15,000 homes completed in the last 9 years, according to National Statistics Institute data. Around 1,400 new homes are currently under construction in and around Constanta, according to Coldwell Banker Romania, the annual absorption rate for newly built homes being estimated at 80 percent.
Iasi and Timisoara represent two other residential markets where over 1,000 new homes are delivered every year as part of residential centres, while Craiova, Oradea and Pitesti are the cities that register the most significant growth among regional markets where less than 1,000 new homes are delivered annually.
About Coldwell Banker Romania
Coldwell Banker Romania is one of the biggest real-estate consultancy companies in Romania, based on the latest official financial results, and the company with the broadest activity on the residential segment, being the local representative of one of the world’s best-known real-estate companies.
Coldwell Banker Romania offers consultancy, brokerage and real-estate asset management services on all market segments: residential, office, industrial, land plots and investments.
With 110 years of history, the company of American origin is currently owned by Realogy Corporation, one of the biggest real-estate franchisers in the world. Coldwell Banker is present in 50 countries, having over 3,000 offices and more than 86,000 consultants and brokers.