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 the 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.
Beatrice Dumitrașcu, CEO Residential Division One United Properties, was invited to discuss within the “Media Days” organized by Bucharest Real Estate Club the trends in the residential market and how the investors’ plans for the upcoming year look like.
The area that keeps on attracting most of the quality projects investments is the Northern part of Bucharest, with its submarkets 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 overcrowded dwellings, new residential developments continue to have high potential on the market.
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 month blockage during the lockdown period at pandemic outbreak.