The real estate market is now more mature than in 2008, when the housing bubble burst, Imoteca said.
Prices and sales of new apartments have remained fairly constant, with variations of minus 3-4% compared with 2018.
Around 14,000 new housing units are to be delivered this year, 40% more than in 2018, pressuring developers to lower their prices. While in 2008 the average price for new apartments stood at EUR2,160/sqm, the average price in 2018 was 42% lower, at EUR1,260/sqm.
Interestingly, while new apartment prices have stabilized over the past two years, old apartment prices have continued to grow, and some old apartments have asking prices comparable to those of new units, which makes buyers gravitate towards the new.
The study found 58% of buyers in six cities in Romania choose new developments. In Bucharest and Ilfov, 61% of buyers choose housing units built after 2000.
Imoteca consultants don’t expect price growth for new apartments this year as the available residential stock is ample. Higher prices could be expected for boutique projects and the luxury segment, where prices have been growing constantly since 2012.
Imoteca The Residential Experts is a one-stop-shop real estate consultancy company specialized on the boutique property segment since 2015.