The number of homes delivered last year in Bucharest and the metropolitan area was 21,328, 3% below the 2021 level, estimate consultants from Colliers, who credit the unexpectedly slow performance in the last three months of 2022 for the decline when 33% fewer homes were delivered compared with the same period last year.

“Clearly, supply is adjusting in response to falling demand, and the market is moving towards a new equilibrium after the last two years of record highs. Further, falling demand, rising interest rates, inflation that reduces purchasing power, and rising construction costs add to the uncertainties affecting the short-term residential market outlook”, explains Gabriel Blanita, Associate Director Valuation & Advisory Services at Colliers Romania.

At the national level, the residential market in Romania increased by only 3% y/y, still registering a record number of 73,332 new homes.

Colliers consultants note an acceleration of migration to more quiet areas in the suburbs or localities around large cities, and this trend is expected to continue in the medium term, creating new prospects for residential developers.

iulian@romania-insider.com

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