Roughly 21,000 new homes were delivered in Bucharest and the surrounding Ilfov county in 2023, according to data from the National Institute of Statistics, down 1.3% compared to 2022’s result. And real estate consultant SVN Romania expects the decreasing trend to continue this year.
According to the ”Romania Residential Market Genome” report released by SVN Romania, the number of homes due to be delivered in Bucharest and its surroundings in 2024 could decrease significantly. Approximately 17,500 new homes could be completed by developers this year in the region, which will mark a 16.5% decrease in the new offer compared to 2023.
SVN Romania estimated a year ago that about 19,000 residential units could be delivered in 2023 in the region – a lower figure than the slightly over 21,000 new home deliveries reported by INS.
“The higher delivery result was mainly due to a significant increase in the number of completed homes registered in the fourth quarter of last year, in a context in which developers accelerated the delivery of projects so that buyers could benefit from the higher price ceiling for which 5% VAT applied for pre-sales sign in 2022,” SVN explained.
While a decrease is expected in new supply in 2024, home sales in Bucharest and its surroundings increased in the first two months of 2024 by 24% compared to January-February 2023.
According to official statistics quoted by SVN, the number of construction permits issued in Bucharest for residential buildings decreased in 2023 by 18.7% compared to 2022 and by 37.5% compared to 2021, while the total net area authorized in residential buildings in 2023 in Bucharest was 54% lower than the 2022 level.
Andrei Sârbu, CEO of SVN Romania, said: “We’re seeing fewer new residential projects, both in construction and advanced planning phases. The increase in home sales and the decrease in construction permits issued will lead to better absorption of newly developed projects and will create the premises for a more significant price evolution compared to the one registered in 2023.”
According to SVN, the areas in the north of Bucharest will continue to attract the largest number of homes that could be delivered in 2024, with a share of almost 40% of the new supply. The areas in the western part of the city will attract approximately 24% of 2024’s new supply, while the east will attract approximately 17% and the south areas about 15%.
Most homes due to be completed in Bucharest and its surroundings target the mass market segment, with a share of about 59%, while the middle market segment will account for about 36.5% of the new supply and the premium segment for roughly 4.4%.
In addition to the homes that could be delivered in the capital city and its surroundings by the end of this year, another approximately 11,000 residential units are in different construction phases, with delivery dates set for 2025 and 2026, according to SVN’s data.
irina.marica@romania-insider.com
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