Report: Fewer new homes and rising prices in several cities in Romania
Over 45,000 new homes were completed last year in the most important ten regional residential markets in Romania, the biggest number of deliveries being registered in Bucharest and Ilfov, followed by Constanta, Timisoara, Cluj–Napoca and Brasov, according to a market report released by real estate consultancy SVN Romania, based on official statistics.
Constanta climbed to first place among the most important regional residential markets in Romania, with almost 5,000 new homes completed last year in the city and its surroundings, up 31% compared to 2022´s result. This was mainly due to deliveries registered in Mamaia – Navodari, which increased by an annual rate of 55%, according to SVN´s calculations.
On the other hand, residential deliveries registered in Cluj–Napoca and Brasov continued to decrease. About 4,200 new homes were completed in Cluj–Napoca in 2023, almost 45% lower than the market peak registered in 2019. Data from the local office of SVN Romania | Cluj shows that this reduced level of deliveries could be registered also in 2024, with about 4,000 homes estimated to be completed this year but also in the following years.
”The number of newly completed homes has almost halved in recent years in Cluj–Napoca, while the transactions volume is clearly higher compared to the pre-pandemic levels. This is the main explanation for the significant home price increases registered in Cluj–Napoca, the current average being of EUR 2,900 per square meter, an almost 15% increased to 2023´s average. The city is still a magnet for both investments and local migration, and the following years could bring an equally low level of residential deliveries, which will maintain pressure on the transaction prices,” commented Anamaria Burca, managing partner SVN Romania | Cluj.
A drop in home deliveries was registered in 2023 also in Brasov, a year in which the city registered the biggest number of home sales registered at a national level, excluding the Bucharest – Ilfov region, according to statistics released by the National Agency for Cadastre and Land Registration.
SVN Romania | Brasov local office data show that approximately 3,700 new homes could be delivered in the city and its surroundings by the end of 2024, a level slightly lower compared to the one registered last year.
Home delivery decreased also in Bucharest and its surroundings: 32% fewer homes were completed in the region in the first quarter of 2024, compared to Q1 2023, according to the National Institute of Statistics. 2024 could bring the smallest number of new homes completed in the region registered in the last five years.
”The total net surface area authorized for construction in Bucharest almost halved in recent years, while home sales increased annually by 25% in the first half of 2024. The decrease in the number of new homes completed over a period of several years, combined with an increase in sales, will lead to a significant increase in prices, Cluj–Napoca being an example in this regard,” Victor Vremera, COO SVN Romania, stated.
(Photo source: Yury Sevryuk | Dreamstime.com)
