Bucharest heads toward record home deliveries in 2019

Home deliveries in Bucharest and its surroundings will hit new records this year, with an estimated 14,000 units, up 24.2% compared to 2018. In the first half of 2019, home deliveries increased by 46.5% compared to 2018, according to real estate consultancy firm SVN Romania.

About 70% of the new units will be sold in advance. In terms of transactions, the market is recovering after a weak first half of the year.

"The residential market has been very good in recent months. The number of transactions recovered, with significant increases in autumn, and prices remained on a positive trend. The absorption rate is still very good, of over 70% during construction phases but developers need to be watchful and to resort to specialized consultancy,” said Andrei Sârbu, CEO SVN Romania.

The recovery in the number of transactions occurred in a general context of diversification and higher offer on the upper levels of the residential market, 2019 being the first year in which the middle market segment held the majority share in the residential market in Bucharest.

As regards other regional markets, Cluj-Napoca remains the largest regional residential market in Romania, with approximately 7,000 homes delivered in and around the city this year.

Prices continued to increase in 2019 and the absorption rate during construction remained at a very high level, over 90%. Cluj-Napoca is also an atypical residential market, about 80% of the transactions concluded by the natural persons being realized from own resources.

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