BR Exclusive: Two residential developers halt construction of their projects close to Bucharest

Newsroom 17/08/2018 | 11:30

Because of the uncertainty that seems to be making its way onto the residential market, where the demand has decreased by 5 percent according to imobiliare.ro, the construction volume having lost almost 30 percent in the first six months and the fact that the growth of prices has slowed, two foreign developers have decided to put on their residential projects on hold.

The two projects are close to Bucharest, in Tunari and Sisesti. They are not very big in size, but the smaller players are usually the first to react.

Market sources told BR that the two investors prefer to keep the land for now as its value will probably grow, while putting construction on hold to see what is going to happen on the market in the next 12 to 18 months.

The residential project from Tunari includes 10 houses and construction had started, while the other project, from Sisesti was in the PUZ (zonal urbanism plan) stage.

In the second quarter of 2018, there were 318 medium and large residential projects on sale in Bucharest, of which 217 were in the construction phase, while the remaining 101 were already completed. Overall, the number of housing units planned to be built in within these assemblies it reaches almost 57,000.