“According to statistics board data, 11,272 apartments were delivered in Bucharest in 2018, a record level for the residential market in Romania. New residential projects currently under development consist of over 20,000 housing units and 70% are set to be delivered by the end of the year,” the real estate firm noted.
The firm expects new residential projects will be in higher demand than old developments due to small price differences and higher quality of new builds.
“A large number of residential projects depends on the construction of the M5 and M6 metro lines. Once these become operational, demand for residential development in adjacent areas will grow,” Crosspoint said.
Apartment sales dropped 15% on the year in the first six months of 2019, to 15,183 units. However, demand for housing in Bucharest remains high and the introduction of a VAT rate of 5% for housing sales below 120 square meters and RON450,000 will stimulate demand further.