Sursa foto: Inquam Photos / Alberto Grosescu
The balance of housing loans granted to the population by banks active in Romania up to and including August 2021 increased to 96.6 billion lei, and 186,000 real estate properties were sold in the third quarter of this year, according to ANCPI. In addition, a real estate.ro analysis shows, in Q3 2021, the residential supply for old houses fell to 16,000 from 16,700 in Q3 2020, partly explaining the repeated price hikes of old apartments and houses in the last period.
Interestingly, the supply of new apartments and houses has increased in the Bucharest-Ilfov area from 16,500 apartments in 400 residential projects to 19,500 in 470 residential projects, despite the blocking of zoning planning by the City Hall until next year.
If in 2020, the price increases recorded between Q3 and Q2 were only 0.3%, in the same interval in 2021, they have gained having to 2.8%. Moreover, according to real estate.ro, between Q3 2021 and Q3 2020, price growth was double-digit, more precisely 10.3%.
And if apartments in old blocks have increased in price by 9%, those in new residential projects have reached a growth of 13.9%, and the multi-year evolution indicates that the market is approaching the level before the 2008 crisis. But this time, it’s not just plans getting expensive on paper, in 2021 projects actually exist, are under construction or completed, and wages have risen accordingly.
But that doesn’t mean that an (already present and expected) increase in bank interest rates can’t turn the market upside down, even though the number of homes purchased with cash has increased, accounting for perhaps over 30% nationally.
In the capital, the most expensive apartments can be found in the central and ultra-central areas, where the average listing value stands at €2,320 per usable square meter, after a quarterly advance of 3.1% and an annual one of 5.6%. In the semi-central areas, such a dwelling is listed for 1,730 euros per square meter, after a gain of 2.3% over three months and 10.2% over 12 months respectively. On the city outskirts , the average price asked by sellers is €1,430 per usable square meter, up 3.9% on the previous year Q3 and 15.6% compared to Q3 2020 respectively.
In Cluj-Napoca, apartments for sale in the central and ultra-central area cost, on average, €2,350 per usable square meter, after a quarterly increase of 4.2% and an annual increase of 8.4%. In the semi-central area, a block of flats has an average listing value of €2,110 per square meter (+3.4% over three months and +10.4% over 12 months respectively). In the suburban neighborhoods of the city, sellers’ expectations are at €1,800 per usable square meter, up 5.4% compared to the previous three months and 7.4% compared to the same period in 2020, respectively.
In Timisoara, homes in the central and ultra-central area can be bought for an average of 1,490 euros per square meter of usable floor space, after an increase of 1.8% over three months and 3.1% over 12 months respectively. In semi-central areas, an apartment is available for sale for €1,330 per square meter, after an increase of 1.2% over three months and 4.9% over 12 months respectively. On the outskirts of the city, the average price asked by sellers stands at €1,310 per usable square meter, up 1% on the previous quarter and 4.9% on Q3 2020 respectively.
In Iasi, apartments in the central and ultra-central area have an average listing value of €1,650 per usable square meter, after a quarterly advance of 3.1% and an annual advance of 7.4%. In the semi-central area, such a dwelling is listed for sale for 1,150 euros per square meter, after an increase of 2.1% over three months and 5.2% over 12 months respectively. In the suburbs, the average asking price for owners is €1,130 per usable square meter, up 2.9% q-o-q and 6.1% q-o-q in Q3 2020 respectively.
Housing demand
Looking at the evolution of demand for housing (apartments and houses) in Bucharest, it can be seen that this indicator started 2021 at a similar level to 2020, approaching the threshold of 50,000 potential buyers, compared to less than 40,000 at the beginning of 2019.
Unlike last year, however, when a downward trend was already apparent in February, in the first quarter of the year
this year, interest in buying a home remained virtually stable. After a slight downward trend in the second quarter of 2021, this indicator reached in the third quarter a level similar to that recorded in both 2020 and 2019, remaining close to the threshold of 50,000 potential buyers.
In Cluj-Napoca, interest in buying a house was, at the beginning of 2021, lower than in 2020, but higher than in the same period in 2019. Imobiliare.ro thus registered just under 7,000 potential buyers, compared to around 9,000 a year ago and less than 6,000 two years ago. As in Bucharest, however, the demand curve was much more stable in the first three quarters of this year, so that in June this indicator reached around 6,000 users – a slightly lower level than that recorded in 2019, but higher compared to June 2020, when demand had, however, begun to recover.
In September, the number of potential buyers in the town on the Somes, which exceeded the 6,000 threshold, was slightly higher
than in 2020, but significantly lower than in 2019 (when it was close to 7,700).
And in Timisoara, the demand for residential properties was, at the beginning of 2021, lower than in 2020, but higher than in 2019: Imobiliare.ro thus recorded almost 8,000 potential buyers in January, compared to around 9,000 12 months ago and less than 6,500 two years ago.
In the following two months of this year, this indicator fell slightly, approaching 7,000 users in March. Interest in home purchases remained around this threshold in the next three months of 2021, with a slight increase in May and then a slight decrease in June. A (relative) stabilization of demand can also be observed in the third quarter of the year, with the peak being reached in August (up to almost 7,000 visitors), after which there was a slight decrease in September.
As in Cluj-Napoca and Timisoara, at the beginning of 2021 the interest in buying a house was also lower in Iasi compared to 2020, but higher compared to 2019; thus, the largest local real estate portal registered around 5,500 potential buyers in January 2021, down from around 7,000 in the same period of 2020, but up from around 5,700 visitors at the beginning of 2019.
Also in Iasi, the demand for residential properties was characterized by an evident stability in the first two quarters of this year. In the third, however, an upward trend is noticeable, with the peak being reached in August, when the number of potential buyers approached 6,000 – and then in September it dropped towards the threshold of 5,000.
House sales
Despite the difficulties created by the Covid-19 epidemic, the first nine months of 2021 were characterized by a positive development in terms of real estate sales, both compared to 2020 and 2019. Thus, the data published by the National Agency for Cadaster and Real Estate Publicity (ANCPI) reveals that in the third quarter of this year were sold approximately 186,000 properties nationwide, up by about 31% compared to the same period last year, when 142,500 properties were traded.
Edited for English