Romanii au cea mai buna perioada pentru achizitionarea unei noi locuinte
Source: Financiarul.ro
Trends in Bucharest‘s Real Estate Market
In the span of 18 months, from July 2017 to the end of 2018, the average monthly payment for acquiring a new two-bedroom apartment in Bucharest surged by approximately 30%. During the same timeframe, the average salary in the economy saw an increase of nearly 20%. However, 2019 commenced with a remarkable period in the modern history of the local residential market, particularly when comparing average salaries to the average price per square meter.
Declining Timeframe for Home Purchases
For the first time, the number of years required to purchase a new two-bedroom apartment, measuring 50 square meters, fell below nine years, equating to 105 average salaries in 2019. These insights stem from the Residential 2019 Market Genome study conducted by the real estate consultancy firm SVN Romania.
Improved Accessibility for Home Buyers
The accessibility of purchasing a new home, excluding bank financing, showed a consistent improvement throughout 2018. The year began with a requirement of 9.8 years to buy a new two-bedroom apartment of 50 square meters, which decreased to 9.5 years by mid-year.
Financing Costs and Economic Indicators
According to SVN Romania, the ratio of the average salary to the typical mortgage payment remains favorable, with a ratio of 1.6-marking the best performance in the last 12 years. The last time these two figures were equal was in 2011, while in 2008, the average payment was over 2.5 times higher than the average salary.
Market Performance and Trends
Overall absorption rates have remained satisfactory, exceeding 70% until the completion of residential projects, even as a portion of purchases, albeit small, originated as early as 2017. The year 2018 can be characterized by contrasts, showcasing both positive developments and concerns regarding short- to medium-term trends. It was the third-best year post-Revolution, with nearly 60,000 units sold, split between urban (almost 60% of the total) and rural areas, reflecting a 12% increase compared to 2017.
Comparative Historical Data
In terms of historical context, 2018 approached the peak years for Romania’s residential market, specifically 2008 and 2009, when approximately 67,000 and 62,500 units were delivered, respectively. Nearly 35,000 homes were completed in urban areas last year, marking a nearly 20% increase from 2017, which had seen a much smaller rise of just five percent compared to 2016.
Regional Market Dynamics
The majority of these homes were delivered by developers in Romania’s seven largest residential markets: Bucharest, Cluj-Napoca, Timisoara, Constanta, Sibiu, Iasi, and Brasov. Monthly negative trends were particularly noted in the latter half of 2018, as reported by the National Agency for Cadastre and Real Estate Publicity (ANCPI). Brasov was the only major market that did not experience a decline in transactions.
Factors Influencing Market Fluctuations
The decrease in transactions during the latter part of 2018 can largely be attributed to a prevailing sense of uncertainty and anticipation, driven by the rapid increase in interest rates due to rising ROBOR indicators, although the overall economic climate remained positive.
Source: Wall-Street.ro
