Surprise on the real estate market. The demand for new apartments in Bucharest registered a 46% increase in the second quarter of the current year.
Surprise on the real estate market. The demand for new apartments in Bucharest is increasing compared to the same period last year. While the offer has a minus of 26%, shows an analysis carried out by a Romanian real estate portal.
The data show increases in the demand for apartments in every area of Bucharest, starting from 11% for the West area, up to 54% for the North area. The offer is decreasing in the North (-44%), in the East (-31%), in the West (-22%) and in the Center (-16%).
Certain apartments, in high demand
Only the southern area has an increase of 6% for the supply of new apartments. Prices drop by 2% in the West. 3% in the East. 4% in the Center and 9% in the South. The North being the only area where an increase of 7% is registered.
“At the level of the Bucharest market, demand has recovered from last year’s dramatic drop, from the second quarter. At that time the prospects were grim: war on our border, galloping inflation, rising interest rates, upward trend in prices. However, the market has shown maturity and resilience, and even if we have not yet exited the risk zone, we have reasons to look with some optimism at the next period. We hope that the impact of the new tax changes will not affect the course of the market, and if this is the case, then we will be able to see a beneficial 2024 for the residential market”, said Dan Niculae, Managing Director, Imobiliare.ro Finance.
Photo source. Piyabay
Forecast: in the medium and long term, an increase in housing prices
In the context of the VAT increase from 5 to 9%, the elimination of facilities for the construction industry as well as the increase of the minimum wage for this field, the medium and long-term forecast is of an increase in housing prices.
“The data presented show a clear decrease in supply of 26% in Q2 2023 compared to Q2 2022 and 12% in Q2 2023 compared to Q1 2023. The difficulty of authorizing new projects, given the urban gridlock in Bucharest, will cause a sharp decrease in the supply of new homes and a pressure on the price”, said Despina Ponomarenco, president of BREC.
Also, the rent segment for new units registered a significant increase in demand of 63% compared to the same period last year and 17% compared to the previous quarter of 2023. Broken down by area, the increase in demand for new apartments for rent starts from 49% to 71% in Bucharest.
2023-10-01 21:00:00
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