Over 45,000 new homes were completed last year in the most important ten regional residential markets from Romania, the biggest number of deliveries being registered in Bucharest and Ilfov, followed by Constanta, Timisoara, Cluj – Napoca and Brasov, according to a market report released by real estate consultant SVN Romania, based on official statistics.
Constanta climbed to the first place among the most important regional residential markets in Romania, with almost 5,000 new homes completed last year in the city and its surroundings, up 31% compared to 2022´s result. This was mainly due to deliveries registered in Mamaia – Navodari, which increased by an annual rate of 55%, according to SVN´s calculations.
On the other hand, residential deliveries registered in Cluj – Napoca and Brasov continued to decrease. About 4,200 new homes were completed in Cluj – Napoca in 2023, a result almost 45% lower than the market peak registered in 2019. Data of the local office of SVN Romania | Cluj shows that this reduced level of deliveries could be registered also in 2024, with about 4,000 homes estimated to be completed in 2024, but also in the following years.
”The number of new completed homes has almost halved in recent years in Cluj – Napoca, while the transactions volume is clearly higher compared to the pre-pandemic levels. This is the main explanation for the significant home price increases registered in Cluj – Napoca, the current average being of EUR 2,900 per square meter, an almost 15% increased to 2023´s average. The city is still a magnet for both investments and local migration, and the following years could bring an equally low level or residential deliveries, which will maintain a pressure on the transaction prices” commented Anamaria Burca, managing partner SVN Romania | Cluj.
Home delivered decreased in Bucharest and its surroundings: 32% fewer homes were completed in the region in the first quarter of 2024, compared to Q1 2023, according to the National Institute of Statistics. SVN Romania´s data indicates that 2024 could bring the smallest number of new homes completed in the region registered in the last five years.
”The total net surface area authorised for construction in Bucharest almost halved in recent years, in a context in which home sales increased annually by 25% in the first half of 2024. The decrease in the number of new homes completed over a period of several years, corroborated with an increase in sales will lead to a significant increase in prices, Cluj – Napoca being an example in this regard. Bucharest´s residential market is currently passing its best period in terms of the affordability of purchasing a new home, but this situation will not be maintained in the existing market parameters remain unchanged”, stated Victor Vremera, COO SVN Romania.
