REAL ESTATE MARKET TRENDS IN Q3 2021

It is necessary to keep abreast of the trends in the residential real estate market every quarter of the year, so I invite you to discuss together how prices have evolved according to the main areas of the largest cities and which are the top ones, how much the demand for apartments and new houses has increased and what is happening with the residential construction market.

In the July-September period, listing values of residential properties in Romania (apartments as well as houses) were up 2.8% compared to the previous quarter.

10 out of 11 major cities (with more than 200,000 inhabitants) recorded increases in the average asking price of an apartment. More precisely, the most significant quarterly increase, +4.5%, was recorded, tied, by Brasov and Oradea, followed by Cluj-Napoca (+3.9%). The next highest national price increases were recorded in Constanța (+3.4%), Bucharest (+3%) and Iasi (+2.4%).

Top 5 cities in terms of apartment prices

Cluj-Napoca continues to occupy the top position (with an average of 1,960 euros per usable square metre), far behind Bucharest (1,630 euros per square metre), followed by Brasov (1,380 euros per square metre), which outperformed Constanta (1,360 euros per square metre). In fifth place in the top ranking is Timisoara (€1,320 per square metre).

Price differences between Bucharest neighbourhoods

In the capital, the most expensive apartments can be found in the central and ultra-central area, where the average listing value stands at 2,320 euros per usable square metre, after a quarterly increase of 3.1% and an annual increase of 5.6%. In the semi-central areas, such a house is listed for 1,730 euros per square metre, after a gain of 2.3% over three months and 10.2% over 12 months respectively. On the outskirts of the city, the average asking price for sellers is €1,430 per usable square metre, up 3.9% qoq and 15.6% qoq respectively in Q3 2020.

Demand for residential properties for sale – houses and apartments

Despite the significant easing of restrictions on Covid-19, demand for residential properties (apartments and houses available for sale) in Q3 2021 was very close to the level recorded in the previous three months – which can be explained by the increased appetite of Romanians to go on holiday, after more than a year marked by limitations in this chapter. Thus, some 152,000 potential buyers searched on Imobiliare.ro for housing in the country’s six major regional centres, compared with 151,000 in the previous quarter.

Property sales, national

Despite the difficulties created by the Covid-19 epidemic, the first nine months of 2021 were characterized by a positive development in terms of real estate sales, both compared to 2020 and 2019. Thus, the data published by the National Agency for Cadastre and Real Estate Publicity (ANCPI) reveals that in the third quarter of this year approximately 186,000 properties were sold nationwide, up by about 31% compared to the same period of the previous year, when 142,500 properties were traded. It is worth noting that the individual unit segment saw an even more significant advance of over 80%, from around 28,500 properties sold to around 51,800. According to official statistics, the number of sales recorded in the first nine months of this year was, without exception, above the levels reached in the previous two years.

Residential construction, completed dwellings

As far as housing construction is concerned, the latest data published by the National Institute of Statistics (INS) reveals that in the second quarter of this year a total of 17,053 housing units were completed throughout the country – a figure that shows an increase of around 19% compared to the previous three months, when 14,302 dwellings were put into use. Compared to the same period last year, when 14,846 housing units were delivered nationwide, an increase of about 15% can be observed.