The number of residential units sold in Romania in the first 10 months of 2021 increased by 65% to more than 150,000 individual units compared to the same period form 2021, according to official data from the National Agency of Cadastre and Real Estate Advertising.
This was the best result recorded on the local residential market in recent history, say representatives of SVN Romania, the real estate consultancy, in a report.
This year over 25,000 new dwellings were under construction in Bucharest and its surrounding areas alone, quantifying investments of over €750 million. Meanwhile, annual investments carried out at a national level exceed the €1.5 billion threshold.
Transaction prices in Bucharest rose by over 12% on the apartments and by 5% for old units, which was the most pronounced growth rate in the past 13 years. The report suggested that this was due to a spike in construction materials’ prices and labor costs.
” Record results recorded in 2021 were possible in a context in which the accessibility of buying a new home reached its best level in recent history – despite price increases caused by significant increases in construction material costs. Wage increases partially offset this but inflationary trends, intensified competition and potential negative developments of the Covid-19 pandemic could still put their mark on the local residential market,” stated Andrei Sârbu, CEO SVN Romania.
SVN Romania’s data shows that Timișoara surpassed Cluj-Napoca as the biggest regional residential market. Almost 5,200 residential units were finalized in Timișoara last year, while in Cluj-Napoca, the volume of deliveries fell short of 5,000 units.
Brașov and Constanța will record combined deliveries of around 7,000 residential units through to the end of 2021, add SVN Romania’s consultants.
