The real estate market increased by 10% year-over-year in the third quarter (Q3) of 2024, mainly due to the impact of inflation and the increased interest of Romanians in real estate investments, according to a RE/MAX Romania analysis. In the same interval, the offices of RE/MAX Romania registered increases of around 12% in terms of the value of the transactions carried out in conditions of a similar volume of intermediaries.

Market dynamics, influencing factors, respectively the main trends and perspectives were gathered in the form of the RE/MAX Romania Real Estate Barometer, a profile market status analysis based on data recorded by the company at regular time intervals.

The market's development is largely determined by the reduction of financing costs and the attractive offers of banks for mortgage loans, which boosted buyers' confidence and led them to actively return to the market, RE/MAX said. Also, the increase in transaction values ​​is an indicator of the change in buyers' behavior, who are willing to invest more in properties, either for personal use or for investment purposes, in the current economic context.

"We see an increase in demand and predict a red-hot market towards the end of 2024. Inflation continues to rapidly erode economies, economic instability adds uncertainty, and political changes in the near future also bring a factor of uncertainty. However, the real estate market has been and remains the most stable long-term investment, attracting an increasing share of the savings and income of those who want to escape from uncertainty," said Răzvan Cuc, president of RE/MAX Romania.

"We expect this upward trend in the market to continue, with potential pressure on prices in 2025 as the stock of new homes continues to decline," he added.

According to RE/MAX representatives, the stock of new homes is in constant decline, a phenomenon that will continue in 2025 amid delays in issuing building permits and the freezing of some real estate projects due to economic instability. In this context, the growing demand for housing could exert considerable pressure on prices. RE/MAX estimates point to possible 15-20% growth in some market segments over the next year as demand outstrips available supply.

irina.marica@romania-insider.com

(Photo source: Tero Vesalainen/Dreamstime.com)