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Bucharest. Of the 3.5 billion euro value of Real Estate projects scheduled for completion by 2023/24, a third is destined for luxury apartments.
In recent years, from 2017 to early 2020, the office and hotel markets were heavily favoured compared to residential, as the next big hotspot for investment. Then along came 2020, the pandemic, lots more time at home to reflect and reconsider one’s future, security, and investment stability and the market changed direction significantly, and with force, against predictions of a downturn.
With the increasing purchasing power of Romanian citizens, the residential market in the Capital has entered a lively period of growth.
The total volume of investments, on all sub-segments of the Bucharest real estate market, is approx 3.5 billion euro, of which the residential sector middle & upper-class quality represents one billion euros, in approx 60 projects that have a deadline of delivery until 2023/24.
Furthermore, according to the Bucharest Real Estate Club, the area that attracts the most projects from the upper class is northern Bucharest, in the areas of Barbu Văcărescu – Floreasca, Aviației, Pipera, Băneasa, Expoziției or Sisești – Străulești.
The main trends of the residential sector in 2021:
- Two-bedroom apartments remain the most popular acquisition in the mix of residential developments for the middle segment.
- Demand for homes has grown by circa 30%, but the majority of construction projects focus on apartments in well-developed or newly developing areas.
- The 2020/21 pandemic favours projects with multiple in-house facilities for residents: green social areas, children’s playgrounds or spaces for outdoor sports.
- New trend in space partitions: with the migration to a hybrid home-office/ fewer-office-days format in the coming period (a few days at the office and a few days in the home office), the developers are including flexible-use areas for creating a home office..
- The data of the NERC (National Real Estate Cadastre Agency) indicates that in 2020 a residential sales volume increase of 19% over 2019, despite the two-month market freeze, during the state of Romanian emergency in the spring of 2020..
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