Rents for new apartments in Bucharest go down in first half

Medium rents for new apartments in Bucharest registered a 6% annual decrease in the first half of 2021, according to estimates from local real estate consultancy firm SVN Romania.

“If the residential market withstood well the shock caused by the Covid-19 pandemic, the rental sector was severely affected, especially in the segments for student and business and tourist travellers. The long-term renting segment registered better results, especially in big cities such as Bucharest," stated Gabriel Voicu, vice-president SVN Romania.

Still, he believes the general climate is continuously improving compared to last year and expects a linear evolution for rental rates in the next 12 months.

The growth registered by the Romanian economy, the degree of immunization, the return of employees to offices, even in a hybrid working system, and the beginning of the new academic year should support the rental sector.

A new one-bedroom apartment in Bucharest is currently being rented for EUR 250-350 on the mass market and EUR 450-600 on the middle market segment. Meanwhile, two-bedroom apartments rent for EUR 600-900 in the middle market segment.

SVN estimates that over 3,000 new homes delivered in Bucharest and its surroundings in the last three and a half years have been purchased for investment purposes to be offered for rent. The current occupancy rate of these units is over 90%, with over 2,700 homes being thus rented to medium-long term tenants for a minimum of six months.

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