Romanian developers sell "on paper" 65% more apartments in Jan-Oct
The number of housing units sold in Romania in the first 10 months of the year (but only in part built and even fewer delivered) was 65% higher compared to the same period in 2020, according to official statistics quoted by Ziarul Financiar.
"The record results recorded in 2021 were facilitated by the high affordability of buying a new home - and despite the price increases caused by significantly higher construction costs. Strong income gains have partially offset the rise in the prices of apartments, but the inflation intensified competition and possible negative developments in the Covid-19 pandemic could make their mark on the residential market," said Andrei Sârbu, CEO of SVN Romania.
Now, the developers only have to build the homes they sold "on paper." This might not be straightforward, given the rising price of construction materials and the tight labour market. The big infrastructure projects expected under the Resilience Plan will also drain a significant part of the workforce.
The number of housing units delivered increased by 5.3% nationally in the first six months of the year compared to the same period in 2020, setting a new half-yearly record. In total, the Romanian residential market has attracted investments of over EUR 1.5 bln in 2021.
Timişoara became for the first time the largest regional residential market in Romania, out of the Bucharest - Ilfov region, ahead of Cluj-Napoca both in terms of the number of residential projects under development and deliveries and in terms of the number of concluded transactions.
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