Real Estate: Real estate market recovers; higher prices for new apartments in Bucharest

Prices of new apartments are highest in Bucharest, recording an advance of 17% against the same period of 2023, according to an analysis made by Imobiliare.ro.   The analysis of price evolutions in the largest cities in the country shows that prices of new apartments are highest in Bucharest where the present average prices per square meter in 1,850 euros.   “Imobiliare.ro index shows an advance of 17% to the average price applied to houses located in buildings completed in the last 5 years. Thus, apartments that sold under 1,590 euros/sq.m in April 2023 can be bought now at an average price of 1,850 euros/sq.m.,” the mentioned source shows.   A 5% increase of the aveage price applied for new apartments in Bucharest was also noticed in the previous month. That indicates a significant flow of new properties that entered the market at higher prices.   In Bucharest, there are now about 50 residential projects of various dimensions to be completed this year, according to data collected by Imobiliare.ro. Most new apartments will be commissioned in the northern part of the city, as well as in the southern and western parts. We are also talking about market extremes, the northern part of the city being known for properties developed at high standards for which some of the highest prices are applied, not only for Bucharest but for the whole country, while in the two other areas buyers can find some of the most accessible variants.   “The interest in new properties in the Capital city, both apartments and houses, has grown by 22% this year, compared to the same period of 2023, at a rate higher than that of older houses. At the same time, the well known problems in the authorities' relations with developers generated a 15% drop of the new segment offer, of up to 13,700 properties”, the Imobiliare.ro analysis shows.   According to analysts, if we strictly speak about potential buyers who focused on apartments located in buildings completed as of 2020, we can say that most of them were interested in offers available in the Militari-Gorjului-Lujerului-Uverturii area.   The strong expansion of the new residential segment in the southern of the city also aroused their interest, the second place in the top being occupied by Berceni area. That was followed closely by another area in the western part of the city – Drumul Taberei. Ozana – Theodor Pallady area in the east of the Capital, intensely developed in past years both at residential and commercial levels, has reached a considerable number of potential buyers.   Cluj-Napoca is the most expensive city in the country for buyers interested in new apartments. The average price requested for these properties reached 2,874 euros/sq.m by the end of last month. Practically, a person who wants to buy a new apartment pays an additional 164 euros per square meter than for a property available in the old market.   “We should note the slow advance of 6% recorded in the last 12 months at price level. In Constanta alone prices went up at a lower rate,” analysts say. The potential buyers' interest was in new properties in this city at the beginning of the year. However, old buildings are keeping up, the growth recorded in demand being higher in their case, according to Imobiliare.ro.   In Brasov, people interested in purchasing a new apartment are now paying 12% than in the similar period of 2023. On the average, people can buy an apartment built in the last 5 years at a price of 2,211 euros/sq.m.   Although new houses cost more, owners applied significant price increases in the case of old buildings. Prices rises exceed 18%. With these prices Brasov preserves third position in the top of most expensive cities in the country for those who want to become owners, Imobiliare.ro shows.   “Early this year, potential buyers focused on new properties available in the local market. However there was a visible drop of demand by 15%, a fact which might indicate a slowing down of the small investors' purchase interest . The offer of new properties, although modest including only 1.200 offers, went up, a rare thing in big cities,” the document shows.   New apartments in Timisoara were offered for sale at prices exceeding those of Bucharest, according to Imobiliare.ro, following price growths of 15% in 12 months. In the local residential market there was a second significant price rise at big city level in the country, exceeding that of Bucharest. At present, an apartment built in Timisoara in the last 5 years can be bought with 1,885 euros/sq.m.   “New houses/apartments were the most attractive for potential buyers in the first quarter 2024, despite the fact that local interest was lower than at the beginning of 2023. The offer of new apartments and houses included 2,000 units at the same time, being 19% richer than in quarter 1, 2023,” analysts say.   The average price requested for new apartments sold in Constanta in the last 12 months recorded the smallest variation and reached 1,733 euros/sq.m. The potential buyers' interest in new properties in that city followed a growing tendency in the first part of this year, reported to the situation recorded in the same period of 2023. The ratio between the number of potential buyers existing in the market and the offer of new properties at local level was higher than in the other major regional areas in Romania.   According to Imobiliare.ro, new apartments in Iasi are now considerably more expensive than last year. The average price paid by buyers has reached 1,629 euros/sq.m, after a rise by 12% in the last 12 months. Even though new houses continue to be sold at higher prices, the price increase rate is more accelerated, an advance of 13% to the value of 1,578 euros/sq.m.   The beginning of the year brought a 15% rise in local market demand, Iasi exceeding all big cities in the country for this chapter. In this case too, the attention of potential buyers focused first on new apartments and houses.   Imobiliare.ro is the real estate website in Romania enjoying the highest confidence of users.