The residential market in the Bucharest metropolitan area is expected to rise by 8% to a new record of 16,000 new housing units this year, according to a report of the real estate consultancy firm SVN Romania.

Meanwhile, over 9,000 new apartments and villas are under different development stages, with delivery dates announced for 2021, according to SVN Romania.

The mass-market segment accounts for the bulk of the new deliveries in 2020, amid significant development of residential poles in the city's western and southern areas.

The low interest rates, rising wages, and only moderate rise in the price of properties have resulted in the best purchasing power ever, SVN experts explain.

Thus, the price of a new one-bedroom apartment (50 sqm net surface, 1,350 EUR per sqm) in Bucharest was the equivalent of less than 100 medium monthly wages at a national level (EUR 677) - or a period of 8.3 years.

The average salaries in Bucharest are significantly above the national average. As a result, 75% of the housing units are already sold before completion.

About 8,500 new dwellings were delivered in Bucharest and Ilfov county in the first six months of 2020, up 32% compared to H1 2019, according to the National Statistics Institute (INS), the first half from 2020 being the best in recent years.

(Photo: Pixabay)

andrei@romania-insider.com