“After a troubled start of the year with lots of pessimistic estimates, the residential market rebounded in May 2019 amid overall excellent affordability. The rise in prices last year can be considered normal, if taking into account the inflationary rate, on the one hand, and the fact that more and more people can afford to buy a home,” said Andrei Sarbu, CEO of SVN Romania.
Out of the ten districts SVN considered – Aviatiei, Berceni, Colentina, Crangasi, Dristor, Drumul Taberei, Iancului, Militari, Mosilor and Titan, Mosilor saw the highest growth, almost 17%, to EUR105,000. The area ended 2018 with an average price of EUR90,000 and rose to EUR109,000 in June 2019, only to go down again and return to more than EUR100,000 at the end of the year. Aviatiei ranks second by rise in price, despite its hot water and heating issues caused by the centralized heating system repairs. Apartments in Aviatiei saw a 15% increase in prices in 2019 from EUR126,000 in December 2018 to EUR145,000 last month.
“We expect prices to rise by 4% to 7% in 2020. The outlook is positive: more and more people can afford to buy a new home and a more expensive home, and the supply is increasingly varied and better adjusted to demand.”
On the other hand, prices went down in two areas of Bucharest, by 6.4% in Militari and by 3% in Drumul Taberei. Drumul Taberei should see its subway line inaugurated in 2020.
(English version by Loredana Fratila-Cristescu)