ROMANIA INDUSTRIAL Q1 2023
The Romanian real estate market has demonstrated solid signs of improvement in the last two years. Sustained by a stable macroeconomic and political environment, the local real estate market has flourished on all segments, including the residential sector. The demand for new residential projects has started to follow un upward trend as a result of private consumption being on the rise, coupled with low inflation, tax cuts, real income increase and a constant decrease in unemployment. This report aims to offer an overview of the premium market of new residential units located in the Northern part of Bucharest. In the last two years, a number of ~ 200 apartments were completed across Bucharest’s premium residential locations. The highest level of supply has been delivered in Floreasca – approximately 32%, followed by Herastrau area, with 25%. When comparing these two areas with other premium residential locations, the average sale price per built sq. m is medium. The low availability of new residential apartments (fig. 1) underlines that demand for premium residential units is strong in these particular locations. The lowest supply of new residential units is recorded in Dorobanti, area where land availability is scarce. When analyzing the number of premium residential projects currently under construction and estimated to be completed in the next two years, the supply totals 550 apartments. Compared with 2014 – 2015, the development activity is stronger and reflects inventors’ confidence in the continuing upward trend of demand for premium residential apartments.