According to a survey conducted by real estate exhibition Imobiliarium among the developers who will be present at the Baneasa fair from October 11-13, 60 percent of developers expect price increases of up to 10 percent per square meter in the next year.
On the other hand, about 30 percent of them said that prices would stagnate, while 10 percent think they will fall.
According to developers, the biggest impediments encountered in Romania over time have been the bureaucracy and lack of workforce, followed closely by the unpredictable evolution of external factors, such as the First Home program, financing, and the accessibility of transport means.
A profile of the average residential developer in Bucharest and surroundings
Over 75 percent of developers who will be present at Imobiliarium Baneasa have been active on the local market for over 3 years, and the remaining 25 percent fall within the 1-3 year period. About 65 percent build blocks of flats, 25 percent only build houses, and about 10 percent focus on both types of housing. In addition, over 60 percent of the projects they have developed fall into the premium and middle price segments.
“The activity of real estate developers comes with an extremely high responsibility because the architecture of the city is constantly changing, and our projects are an integral part of this change. Through them we want to bring to life premium areas of Bucharest and, at the same time, increase their value. We are currently in the implementation phase of launched projects. Regarding our properties on Calea Victoriei, we are close to completing the work for our first office space project – H Victoriei 109 – and we are finalizing the consolidation phase for the H Victoriei 139 residential project – one of our premium projects. We recently started construction works on H Pipera Lake, a modern residential complex developed on the shore of Lake Pipera, and next year, in 2020, we plan to start work on H Eliade 9 Residence, another residential project in the premium category. We also intend to continue our investments in the property portfolio,” said Ana-Maria Pop, Chief Operating Officer of Hagag Development Europe.
“The residential construction market in Romania has been and still is highly fragmented, with very few players able to support large-scale residential projects over long periods of time. Impact Developer & Contractor has a relevant history of 28 years on the residential market in Romania and Greenfield Residence started development 12 years ago. Projects of this type are exceptions on the Romanian real estate market, still dominated by projects conditioned by limited space. We are in a phase of maturation of the market, which is manifested both by the availability and the increase of the quality of offers, but also by an increased degree of “sophistication” in customers’ demands. The stable economic environment favors clients being more demanding and wanting both a good location as well as high quality, project certifications and as many facilities and benefits as possible. Therefore, we are convinced that our current projects in Bucharest, Luxuria Domenii Residence and Greenfield Residence, will continue to have a decisive competitive advantage both in terms of the uniqueness of the projects, but also because of the stability and confidence we provide to our clients,” said Razvan Ionescu, Marketing Director at Impact Developer & Contractor.
Among the projects that will take part in the Imobiliarium fair from October 11-13 are Neo Timpuri Noi – division of One United, AFI City, Cordia -Parcului 20, Greenfield Residence, Luxuria Domenii Residence, Arcadia Apartments Domenii, H Pipera Lake, Victoriei 139, Cloud 9 Residence, American Village, Valletta Residence, Hils Pallady Apartments, City Point Aviatiei, Atria Urban Resort, Apptown Residence, Swiss Lake Residence, Casa Presei Residence, Scandinavian Village, Metropolitan Residence.