The increase of VAT to 9% will lead to a price increase, while buyers have a growing interest in green homes, concluded speakers of the residential panel of SEE Property Forum 2023, held in Bucharest recently.
Irina Caraene, Sales Director at Cordia Romania, mentioned Urbanistic regulation, the fiscal environment and ESG as some of the factors influencing the residential market.
Speaking about 2024, Bogdan Bălașa, General Manager of HILS Development, pointed out the residential market will continue to develop as there is a shortage of supply. Moreover, in 2024, home prices will grow by at least 4% as the VAT will grow from 5% to 9%. Buyers are looking more for properties in good locations, close to public transport. They want to use the metro or the bus to get to the office.
The high inflation rate and the increase in mortgage costs are a challenge for home buyers, explained Bogdan Iliescu, Commercial Director at Nusco Imobiliara. He added that all the new environmental elements have to be put into buildings because the clients want them.
Bogdan Letca, CEO & Development Manager, Art Property Development, explained that as long as you have a healthy project, it is not that tough to get financing. Banks have a good appetite for financing but are picky. On loan accession, the most affected are mid or lower layers, which feel the increase in prices and the loan interest rates. In the premium area, people were able to put aside cash that helped them make bigger home purchases.
Compared to 2-3 years ago, the community aspect of a project has become more important. It is not just the location, but the transport means to the office as well. The option to have a space for the office in the apartment and the facilities in the area have also gained ground, according to Costin Nistor, Managing Director, Fortim Trusted Advisors.
Cosmin Savu-Cristescu, Managing Director, REDPORT Capital, said the Straulesti area has attracted a lot of interest in the past five years as it is in the new Bucharest area. There is a challenge with zoning and permitting. This means that you have to explain your vision with its advantages to the municipality so the inhabitants of the city will have a newly developed area. Savu-Cristescu added that Redport Capital has some good dialogue partners with local authorities,
Adi Steiner, Managing Partner, STC Partners, said he sees in the company’s ongoing project Quartier Azuga that buyers are very interested in green homes and sustainability.
