Romanians want to be owners and, above all, to buy a new home, and this is visible from the increased interest in such properties registered in the market recently. Moreover, they are encouraged to make a purchase by the increasingly better credit offers from the banks, but also by the realization that prices will not register significant decreases in the future, on the contrary, they will most likely continue to follow a trend ascending as they have done so far. Moreover, those who hesitated to make a purchase last year are now paying almost 20% more for a similar home, according to a press release from Imobiliare.ro.
“The real estate market has been showing signs of recovery since the fall of last year. However, this spring surprises in terms of price evolution, with sustained monthly increases in most cities. Current prices are supported by a large increase in demand. We are therefore in a context market favorable for acquisition, with a forecast of increased interest and prices in the coming period,” said Daniel Crainic, Imobiliare.ro marketing director.”
Bucharest, champion in price increases
Analyzing the evolution of prices in the big cities in the country, we can say that new apartments have become more expensive in Bucharest. The Imobiliare.ro index shows us a 17% advance on the level of the average asking price for homes located in buildings completed in the last 5 years. Thus, apartments that were sold for under 1,590 euros/useful square meter in April 2023 can now be bought for an average price of 1,850 euros/useful square meter.
A 5% increase in the average asking price for new apartments in the Capital was also observed in the last month. This indicates a significant flow of new properties entering the market with higher prices.
In Bucharest, at the moment, there are about 50 residential projects of various sizes that have a deadline for completion during this year, according to information collected by Imobiliare.ro. Most of the new apartments would be put into use in the northern part of the city, but also in the south and west of the capital. Thus, we are talking about extremes of the market, the north of the city being known for properties developed to high standards for which some of the highest prices are requested not only in Bucharest, but also in the country, while in the other two areas buyers can find some among the most affordable options.
Future buyers carefully analyze the offer in the west of Bucharest
Interest in new properties in the Capital, both apartments and houses, increased in the first quarter of this year by 22% compared to the similar interval in 2023, at a faster rate than that related to old houses. At the same time, the well-known problems in the relationship between the authorities and the developers generated a 15% decrease in the offer in the new segment, up to 13,700 properties.
If we are talking strictly about the potential buyers who have turned their attention to the apartments in buildings completed since 2020, we can say that most of them have looked at the offer available in the Militari-Gorjuli-Lujerului-Uverturii area.
The strong expansion in the new residential segment in the south of the city also aroused their interest, the second place in the ranking being occupied by the Berceni neighborhood. It was closely followed by another neighborhood in the west of the city, Drumul Taberei.
The Ozana-Theodor Pallady area in the east of the Capital, intensively developed in recent years both residentially and commercially, has in turn attracted a considerable number of potential buyers.
Is there still room for growth in Cluj-Napoca?
Cluj-Napoca is the most expensive city in the country for buyers interested in a new apartment. The average price requested for these properties reached the value of 2,874 euros/usable square meter until the end of last month. Basically, a person who wants to buy a new home pays 164 euros more per square meter than if he opted for a property available on the old market.
What should be noted, however, is the reduced advance registered in the last 12 months at the price level, of around 6%. Only in Constanta did prices increase at a slower pace.
The interest of potential buyers also gravitated in this city to new properties at the beginning of the year. However, old homes are lagging behind, the increase in demand being greater in their case, Imobiliare.ro data show.
However, we cannot overlook the way in which the peri-urban area is developing, as well as the migration of a segment of the population towards the housing available on the outskirts of the city in search of more attractive prices.
Prices are also rising in Brasov
Buyers interested in purchasing a new apartment in Brasov are now paying 12% higher prices than in the same period last year. On average, you can buy an apartment in a building completed in the last 5 years for 2,211 euros/useful square meter.
Even if the new houses cost more, the owners have operated more significant price increases in the case of old houses. The increases exceed, this time, 18%. With such prices, Braşov maintains its third position in the ranking of the most expensive cities in the country for those who want to become owners.
At the beginning of this year, potential buyers focused their attention on new properties available on the local market. However, a 15% decrease in demand was visible, a fact that could indicate a decrease in the purchase interest from small investors. The supply of new properties, even if it was modest with only 1,200 dwellings, increased, which is rare among big cities.
Timisoara surpasses Bucharest in the new segment
New apartments in Timişoara ended up being put up for sale at prices that exceed those in the capital, according to the Imobiliare.ro Index, after price increases of almost 15% in 12 months. On the local residential market, it was possible to observe, thus, the second most significant advance in prices among the big cities in the country, surpassed only by the one recorded in Bucharest.
Currently, an apartment completed in the city on Bega in the last 5 years can be bought for 1,885 euros/useful square meter.
New homes were also the most attractive to potential buyers in the first quarter of 2024, despite the fact that the level of local interest was lower than at the start of last year. The offer of apartments and new houses included almost 2,000 units in the same time frame, being 19% richer than in the first quarter of 2023.
The apartments became the least expensive in Constanţa
The average asking price for new apartments put up for sale in the coastal city recorded the smallest variation in the last 12 months and reached 1,733 euros/useful square meter.
The interest of potential buyers for new properties in Constanţa followed a strong growth trend in the first part of this year, if we refer to the situation recorded in the similar period of 2023. The ratio between the number of potential buyers existing on the market and the offer of new properties of locally it was higher here than in the other five major regional centers in Romania.
Significant costs in the cheapest big city in the country
New apartments in Iasi are now considerably more expensive than last year. The average price paid by buyers reached 1,629 euros/useful square meter, after a 12% increase in the last 12 months.
Even if new homes are still sold at higher prices than those on the old market, the pace at which prices have increased in the case of the latter is more accelerated. We are discussing an advance of about 13% up to the value of 1,578 euros/usable square meter.
The beginning of the year brought a 15% increase in terms of demand on the local market, Iasi surpassing all the big cities in the country in this regard. And this time, the attention of potential buyers was primarily focused on new apartments and houses.
Tags: Imobiliare .ro apartments higher prices #08.05.2024
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