Real estate consultancy Coldwell Banker Affiliates of Romania forecasts that 2016 will be the best year for the local residential market, despite the challenging financing environment marked by the approval of the debt discharge law and the fast consumption of guarantees limits on the state-backed program Prima Casa for first home buyers.
Around 30,000 new homes are set to be finalized by the end of this year, in residential projects across the country. The biggest residential markers were, aside from Bucharest, in Cluj-Napoca, Constanta, Sibiu and Brasov.
In Bucharest, around 1,500 units were delivered close to areas that registered a strong development of offices in Aviatiei-Barbu Vacarescu, Grozavesti-Politehnica and Tineretului.
The delivery volumes for new buildings in Bucharest and the surrounding areas will reach 13,000 units, up 20 percent on the previous year. The biggest share, of around 53 percent, is included in the mass market segment, while the projects targeting the middle class hold a share of close to 40 percent.
The study estimates an absorption rate of 70 percent of homes completed this year, while the rest will be covered in the next six to nine months.
Data from the National Agency of Cadastral and Real Estate Advertising show an 8.6 percent increase in the number of transactions closed in the first nine months of this year, compared to the same period of last year.
The biggest regional residential markets were this year in Cluj-Napoca, Constanta and Sibiu, with over 2,000 units slated for delivery, followed by Brasov, Iasi and Timisoara. The biggest absorption rates of the new building stock were seen in Cluj-Napoca and Brasov.
Coldwell Banker Affiliates of Romania sold this year around 2,000 new buildings, directly from the developer.
The company said that the sales of new homes slightly fell after the approval of the debt discharge law, but the market returned to growth after the funds for Prima Casa were increased and most of the banks lowered the down-payment for mortgage loans to 15-20 percent.