In the context of Covid – 19 pandemic and with the amount of time spent at home having increased in the past year, together with the increase of Romanians` purchasing power, the Bucharest residential market is undergoing an effervescence period. Developers active in Bucharest are investing a total of 1 billion euros in middle & upper class housing projects, which improve the living standards in the Capital City, according to BUCHAREST REAL ESTATE CLUB analysis – THE NEW FACE OF BUCHAREST.
According to BUCHAREST REAL ESTATE CLUB data, the total investments volume, on all sub-segments of the Bucharest real estate market is 3.5 billion euros (of which the residential sector – middle & upper class quality projects represent a total of 1 billion euros), in 60 projects included in the analysis, completed in 2020 or with delivery term until 2023. National Real Estate Cadastre Agency data reflect a residential sales volume higher by 19% in 2020 as compared with 2019, despite a 2 months blockage during the lockdown period at pandemic outbreak.
According to BUCHAREST REAL ESTATE CLUB analysis, the area that keeps on attracting most of the quality projects investments is the Northern part of Bucharest, with its sub-markets Barbu Vacarescu – Floreasca, Aviatiei, Pipera, Baneasa, Expozitiei, Sisesti – Straulesti.
With Eurostat data reflecting a 45,8% percentage, almost half of Romania`s population living in over-crowded dwellings, BUCHAREST REAL ESTATE CLUB estimates a continuing high potential on the market for new residential developments.
MAIN TRENDS OF THE RESIDENTIAL SECTOR IN 2021:
- 2-rooms apartments remain prioritary in the development mix for the middle segment, as they are most searched by buyers for and price – affordable.
- Individual houses and villas demand increases by 30%, but most projects focus on apartments well located within the City and served by various facilities.
- Pandemic favors projects with multiple facilities for the living communities: green areas, children playgrounds or special areas designed for outdoor sports.
- New types of layouts: considering the evolution towards a new hybrid work format (several days from home and several days from the office), developers also consider the idea to include an office area in the new housing layouts, which can improve the comfort of working from home.
- New areas of interest: together with the inauguration of the new M5 subway in the Central – Western part of Bucharest, new residential projects may be announced in the following period; another area of interest which will attract new investments is the one in the near proximity of the Urban Highway, where some developers are already preparing projects.
- The luxury segment continues its development trend, with more and more sophisticated clients, whose incomes were not affected by the pandemic and who that pay up to 4-5.000 EUR/sqm for exclusive properties.