Apartment market in Romania to cool down in 2023 amid rising prices, interest rates

The year 2022 ended with an 11% increase in the number of apartment transactions in Bucharest, compared to the previous year, according to a recent Colliers report.

Furthermore, the authorized area of residential projects increased by 21%, exceeding 2 million square meters – the equivalent of more than 40,000 apartments, Colliers consultants estimate.

For the rest of the country, the volume of deals in the residential market has fallen by 10%.

The divergent evolution between Bucharest and the rest of the country continues in 2023, with apartment sales in January this year recording a significant decrease in the major cities, except the capital city.

Nationally, Colliers consultants noted that there are 20% fewer transactions compared to the beginning of last year and argued that the rise in interest rates would result in a considerable slowdown for the residential market, with demand continuing to adjust at a faster speed than supply.

For 2023, Colliers consultants note an increasing interest among Romanians in rented housing – driven by the prices that continue to grow significantly faster than incomes amid rising building material costs and current economic conditions.

(Photo: Teodororoianu | Dreamstime)