Romania

by Realigro Team On 12/29/2019

Thunderstorms on the horizon?

The end of the year is almost here for Romania too. And betting on the real summer of 2020 is never easy. But we can always try, based on the general trend of Romanian real estate in 2019. So, if you have a bit of curiosity and can’t wait to find out more, all you have to do is read the next few lines. Our column today will be dedicated to Romanian real estate.

The prices

Before we start by defining the current situation in Romania, it is necessary to make an historical excursus on Romanian real estate prices.
Let us assume that house prices have been rising continuously for about six years now. Although the pace is very slow, they continue to rise. However, this leads to a weakening of demand. The average price of apartments in Romania, in percentage terms, has increased by 6.5%. Speaking numerically, we find a figure of € 1,239 per square metre. The average national price has therefore increased by 1.5%.
But after giving a general background, we need to go into more detail.

The main cities

It is therefore essential to analyse in detail what prices are in the main cities in Romania.
Here is a short list:

In Bucharest the average selling price of the apartments has increased by 6%. € 1.335 per square meter.
In Cluj-Napoca , the fourth most populous city in Romania, property prices rose dramatically by 6.7% . We are talking about 1.555 € per square meter.
In Timisoara , the average selling price of a house increased by 4.7% (1.7% adjusted for inflation) . We are talking exactly € 1.207 per square meter.
In Brasov , an increase of 9.43% (6.23% inflation-adjusted) was recorded.
In Constanta , the oldest city in Romania, the prices of the apartments have been inflated very little. Only by 2.01% . In monetary terms, we are talking about € 1.117 per square meter .

Demand paradox – construction

The real paradox in Romania at the moment concerns the link between real estate demand and construction. While the former is becoming scarce, the latter continues to increase.
This is a truly absurd situation, given that, given the general price increase, the construction system should also slow down. The area of residential building permits, issued in the last year, has also increased exponentially.
We are talking about an annual increase of 10.7 million square metres.

In conclusion

In general, although this situation may seem quite tangled, Romania is a good enough economy to invest in real estate. The rental yields are quite good, and this allows a not indifferent financial recirculation.
We cannot give you a firm forecast for 2020. But we can, together with you, find out more about it by staying up to date on our official portal. We will give you all the information you need for any real estate!

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