The developers are both Romanian and foreign and they eyed various areas in Bucharest they feel might attract buyers who want to own the homes they live in or – to a lesser extent – invest in homes to rent.
Sector 6 continues to expand through the projects of at least four developers. Real estate consultants say more deals involving land for residential development will follow.
“The revitalization of the deals in land for residential development is a good thing and there are a number of deals in progress at the moment so we will continue to see new projects announced,” says Gabriel Voicu, head of the New Homes division of Coldwell Banker Romania.
“The number of homes under development is higher than at the 2008 peak, but the market is completely different from what it was before the economic crisis. More than 95% of the current buyers are end users, compared with about 20% to 30% in 2006-2008.”
Another thing to note is that unlike the real estate market peak of 2008, a new home is more affordable now, as a potential buyer needs less than one third of the number of average wages they needed to buy a home back in 2008, Gabriel Voicu added.
(English version by Loredana Fratila-Cristescu)