“The average number of apartments sold per month is of 2-5 units, varying by the type of project and location. Standard, peripheral projects sold consistently each month, whereas more expensive central schemes witnessed some months without any sales. The behavior of buyers has changed, and the market faces choosier, more sophisticated purchasers. Buyers expect to receive very good value for money as they have plenty of options from which to choose,” reads the survey.
Housing stock has reached 24,250 new units, with 850 apartments delivered in the first part of the year in seven projects.
“Despite four years passing since the financial crisis began to impact on Romanian real estate, the residential market continues to struggle and 25% of the existing supply remains unsold, if we refer to only apartments sold directly by developers. Nevertheless, when estimating the total number of apartments available for sale, one should also consider the second-hand market and units in smaller-scale projects. Consequently, the total supply available for sale in the market is estimated at approximately 8,000-10,000 new apartments,” reads the survey.
Developers have started to adopt more creative marketing strategies, introducing different options for purchasers, such as rent-to-buy schemes or move now and pay in one year programs, the source says.
“The highest absorption figures are also registered in standard schemes, as the purchasing power of most Romanians remains limited and buyers have become more cost-conscious in recent years. New supply is mainly in peripheral locations, particularly in projects suitable for government programs,” the survey shows.
About 47% of apartments are on sale for EUR700-900 per square meter, 23% of them go for EUR900-1,100/sqm, while 27% are sold for EUR1,000-1,400/sqm. Only 3% of the offer represents high-end apartments. Their asking prices range between EUR1,500 and 2,000/sqm.
The average price of a Bucharest apartment is EUR1,000/sqm, and it might fall further depending on the country’s economic situation.
The number of projects to be delivered is much lower than the levels announced in 2007 and 2008. “Some developers who bought sites during the boom period for residential development have tried to sell them for different uses, particularly ‘big box’ developments,” the source shows.