ROMANIAN RESIDENTIAL MARKET REPORT
Q4 - 2020 CONTENTS
3 2019 vs 2020 7 Market overview 8 Residential price index 9 Price changes of residential properties 10 Evolution of prices in county seats 11 Rankings: the evolution of asking prices 14 Time on market and negotiation margin 15 Demand for residential properties for sale 18 Demand according to property type 22 Sold properties, nationwide 26 Number of properties for sale in the major cities 27 Apartments and houses newly placed on the market 29 Residential buildings 31 Primary market 32 About us demand
2019 2020 Demand for residential property purchases in six major cities (source: Analize Imobiliare)
482,000 455,000 Potential buyers Potential buyers
Real estate properties sold nationwide (source: ANCPI)
540,000 603,000 Real estate properties sold Real estate properties sold
Of which, individual units: 114,000 123,000 Individual units sold Individual units sold
Credit balance for housing properties, granted to the population nationwide (source: BNR)
81.2 billion RON 89.2 billion RON balance Dec 2019 balance Dec 2020
Net nominal average salary (source: INS)
RON 3,179 RON 3,411 Nov 2019 Nov 2020
Unemployment rate (source: INS, according to BIM definition)
4% 5.1% Nov 2019 Nov 2020 offer
2019 2020
Sales offer, existing (old) properties market, in six major cities (source: Analize Imobiliare) 44,000 41,000 Apartments and Apartments and houses for sale houses for sale
Rental offer, existing (old) properties market, in six major cities (source: Analize Imobiliare) 56,000 74,000 Apartments and Apartments and houses for rent houses for rent
Sales offer, new properties market, in six major cities (source: Analize Imobiliare)
17,000 22,000 Apartments in 500 Apartments in 540 residential projects residential projects
Newly-built housing properties nationwide (source: ANCPI)
67,000 70,000 estimated by Analize Imobiliare
Number of construction permits for residential buildings nationwide
42,000 40,000 autorizații estimated by Analize Imobiliare PRices and costs
2019 2020
Annual growth rate in asking prices for residential properties nationwide (source: Analize Imobiliare)
+7.4% +3.5% Q4 2019 vs Q4 2018 Q4 2020 vs Q4 2019
Existing properties market (source: Analize Imobiliare Q4 2020 vs Q4 2019)
+8.5% 0% Q4 2019 vs Q4 2018 Q4 2020 vs Q4 2019
New properties market (source: Analize Imobiliare Q4 2020 vs Q4 2019)
+4.5% +5.7% Q4 2019 vs Q4 2018 Q4 2020 vs Q4 2019
Cost index in constructions for residential buildings nationwide (2015 = 100, source: INS)
134.6 136.4 Oct. 2019 Oct. 2020 POSITIVE PERSPECTIVES FOR THE RESIDENTIAL MARKET, SUPPORTED BY THE NEED FOR MORE SPACIOUS HOMES
which almost 60% answered the net new demand manifested on the market - relocations, expansions, pre-leases.
Deliveries of new premises increased by 155,000 square metres, which indicates that office project developers were not disheartened, but that they kept on building. Although the vacancy rate increased to 12.4%, last year did not see a drop in the developers’ trust in this market. However, 2020 marked the beginning of a major change with regard to design, the technological solutions which will be available for office projects in the future, the services which will be provided to lessees, particularly the property management services.
As owner of the Oregon Park project, Lion's Head adapted to “the The residential market in Bucharest and Ilfov had its engines new normal”, which imposed restrictions, additional hygiene running at almost maximum power in 2020, in spite of the measures and the implementation of new rules, through services difficulties caused by the health crisis and, implicitly, in spite of the adapted to the health crisis. What we found was that, although the uncertain economic climate. At national level, the number of employees worked from home to a greater extent, this was not homes delivered in 2020 seems to have reached a new record, and automatically reflected in a reduction of the surface leased by the number of transactions increased, compared to 2019. Naturally, companies. The social distancing measures recommended by the in a first stage, the onset of the health crisis had a negative impact authorities were reflected in a reduction of the number of upon the residential market, but last year’s final months brought a employees present in the office space simultaneously, as well as in general improvement in terms of real estate purchases, while a reviewing of workspace division, so as to ensure sufficient area prices remained relatively stable. for each employee, to the purpose of preventing the spread of the new coronavirus. One interesting fact in 2020 consisted in the ever more organized development of the residential market’s middle market segment. Working from home is not necessarily the best option The buyers’ desire to live in larger spaces, in the home-based work Moreover, eight months after the onset of the pandemic, it was context, the increase in revenue and the lower interest rates have proven that “work from home” was not really considered the best made the purchase of a new home in this category more solution by the employees, many of them preferring - or, actually, accessible. This is true given an annual increase of 2-3% in the needing - to work from the office, at least for part of the time. prices of housing properties, indicating a healthy market growth. Working from home was not exactly a good option for certain categories of employees, such as the new ones. For the year 2021, the continuation of large residential projects is envisioned, with some developers having plans to launch new Although there has been much talk about the fact that offices are ones; how such plans will materialize depends on the general becoming less important for the performance of people’s work, market conditions, as well as on the facilities which the Romanian our surveys indicate otherwise, and the lease collection rate (over state should grant to encourage the residential market - such as 95%) for office spaces speaks for itself. Against this background, raising the threshold for the application of the reduced VAT rate. the development of office projects having a cumulated surface of The macroeconomic climate and the evolution of the COVID-19 approximately 250,000 square metres is announced for the year pandemic will be the main factors which will leave their mark 2021. Lion’s Head has not lost its appetite for the office segment, upon the trust level of potential buyers, influencing their purchase which it still finds interesting, along with the residential one. decision. Anca Simionescu, Office developers are also continuing their projects Country Manager Lion’s Head On the office market, last year was uncharacteristic: although it started with high expectations in terms of lease demand evolution and with large projects in progress, it naturally suffered the effects of the health crisis. However, by the end of the year 2020, premises in excess of 240,000 square metres were traded in Bucharest, of
6 MARKET OVERVIEW
The interest in the procurement of land, houses and apartments with a garden in the peri-urban areas remains high. Although most searches in the main six counties consists of apartments, the high interest in the purchasing of houses and land for constructions in the peri-urban areas of the major cities was clearly distinguished, starting from April of last year. In Bucharest and in the county of Ilfov, in the months when the general interest in the procurement of apartments was decreasing, more and more buyers were looking for apartments with a garden on the ground floor of apartment buildings. In Prahova and Brașov counties, which are areas with potential for tourism, an increase of over 50% in the demand for house and land purchases was registered.
The residential constructions sector emerged stronger from the crisis. The most important indicators in the construction sector Asking prices increased by 3.5% in 2020, which is a lower rate registered increase in 2020, compared to the similar interval of than in 2019. 2019. In the first nine months of last year, 48,490 housing Although in the first quarter of 2020 the annual growth rate of properties were completed, 2,053 more than in the similar period asking prices for residential properties increased to almost 9.5%, of the previous year (according to INS). Also, the official data the effects of the pandemic were, however, felt in the following two indicates that, in the first eleven months of last year, the volume of quarters. It was only in the last three months that we saw a new construction works increased by 16.7% (gross series) compared to 1.9% increase in asking prices for residential properties, compared the same period of the previous year. In spite of the two lockdown to the previous quarter, and thus the difference compared to last months, the major developers continued the construction and year reached +3.5%. Prices increased in the new properties delivery of housing properties, with sales above expectations in segment (units sold directly to developers) at an annual rate of 2020. 5.7%, while, in the existing properties segment (resold properties), asking prices stagnated. Low demand and oversupply maintain the pressure over lease prices. The growth rate for trading prices is also lower: the latest data The rental market in the six major cities was more generous in published by the National Institute of Statistics (INS) indicates, for 2020 than in 2019, more than 74,000 apartments and houses were the third quarter of 2020, an annual increase of 2.3% (compared to put up for lease, compared to 56,000 in 2019, representing an 6.6% in the second quarter, respectively 8.1% in the first three increase of more than 30%. We estimate that, at the end of last months of 2020), whereas the European average was 5.2%. year, one in five apartments available for rent in Bucharest was leased, whereas, before the onset of the epidemic, the ratio was Demand stays high for purchases of housing properties in the one in six. In 2020, owners in the Capital increased the asking lease major cities. by an average of 6% for two- and three-room apartments, Although it was slightly lower than in 2019, reaching 482,000 respectively by 8% for studio apartments and four-room potential buyers, demand for the procurement of apartments and apartments. houses in the six major cities gradually recovered once the restrictions were lifted, and it reached 455,000 potential buyers in We believe that the year 2021 will still pose plenty of challenges to 2020. According to our estimations, potential demand is four times the investors, given the increase in sale prices and the lower leases higher than the supply of residential properties, both on the new of the previous year. New housing properties are added to the properties market, and on the market of existing properties. existing offer, which are put up for lease for the first time, a part of the units delivered in 2020. Short-term leases will only recover after The number of real estate properties sold in 2020 nationwide was local and international tourism, as well as business trips, are 11.6% higher than it was in the previous year, exceeding 600,000 resumed. properties. Out of these, 123,000 were individual units. Bucharest and the county of Ilfov remained the markets with the most Dorel Niță intense trading activities, 27% of the properties at national level Head of Data and Research, Imobiliare.ro being sold here. More than 50% of the real estate purchased nationwide are in Bucharest and in the counties of Ilfov, Cluj, Brașov, Timiș, Constanța, and Iași.
7 RESIDENTIAL PRICE INDEX
While the third quarter of 2020 was characterized by a demand and raised a series of difficulties in the comeback to (some sort of) normality after the state of materialization of a real estate transaction. However, after emergency set up in the context of COVID-19, the the transfer to the state of alert, prices stabilized and they residential market obviously followed an upward trend in later resumed their growth visibly. the first quarter of the year, in spite of maintaining some restrictive measures. In this context, the data centralized Regarding the trading values of housing properties in the by Analize Imobiliare indicates that, in the European Union (EU), the latest data published by October-December period, asking prices for residential Eurostat highlights, for the fourth quarter of 2020, a 1.4% properties in Romania (apartments, as well as houses) increase compared to the previous quarter and, registered a 1.9% increase compared to the previous respectively, a 5.2% compared to the same period of last quarter. year. The statistics for Romania, on the other hand, indicate a 2.6% decrease compared to the previous By comparison, in the three previous months, the claims quarter, whereas the 12-month price difference was of housing properties saw a slight increase, more positive, amounting to 2.3%. Thus, the more pronounced specifically of 0.3%, after a 1.7% setback experienced in the decrease in sale prices compared to list prices may second quarter of the year. In other words, the prices of indicate a higher availability of the sellers for negotiation housing properties were reduced strictly during the state after the end of the state of emergency. of emergency, while circulation restrictions affected
„After the stabilization trend in Q3 2020, asking prices for housing properties in Romania resumed the upward trend in the last quarter of the year - which must be corelated, of course, with the development of market demand.”
Residential price index (2015=100)
250
Analize imobiliare Q4: INS Q3: 200 QoQ +1.9% ↑ QoQ -2.6% ↓ YoY +3.5% ↓ YoY +2.3% ↓
150
100
50
Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 ------4 5 5 6 7 8 9 11- 0 4 6 7 8 9 10 11- 12 12 13 13 14 15 15 16 17 18 19 0 0 0 0 0 0 0 0 10 0 14 16 17 18 19 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 2 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Romania (Analize Imobiliare and Imobiliare.ro)
European Union (Eurostat, EU28)
Romania (INS) Source: Analize Imobiliare, Imobiliare.ro and Eurostat
8 PRICE CHANGES OF RESIDENTIAL PROPERTIES
Given the inertia which, generally speaking, characterizes and even exceeded - the 3% threshold in the last two the real estate market, it is, of course, noteworthy that the quarters of 2019. general situation created by COVID-19 practically only resulted in one quarter marked by a decrease in asking Regarding the annual price difference, which is another prices for residential properties. The quick recovery in the important indicator for the residential market, it is given context is also indicated by the fact that the noteworthy that it reached, in the final quarter of last year, stabilization in Q3 2020 was soon followed by a revival of a value of +3.5% - which marks a decrease of approximately the upward trend in prices. For that matter, the growth one percentage point compared to the previous quarter, margin in last year’s final quarter is perfectly similar to the when it stood at +4.6%. Although this is one of the lowest quarterly evolutions recorded under normal market values registered in the past years, it is noteworthy that a conditions: a similar annual growth, of 1.94%, was similar level, respectively 3.53%, was also reached in the registered before in Q3 2017, even if this indicator neared - second quarter of 2019, under normal market conditions.
Quarterly rate of change in prices
20 Average over the last four quarters 15
10
5
0
-5
-10
-15
-20
Q1 Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 - - 6 6 7 7 8 8 9 9 0 0 11 11 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
50 Average over the last four quarters 40 30 20 10 0 -10 -20 -30 -40
Q1 Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 -Q1 -Q4 - - 6 6 7 7 8 8 9 9 0 0 11 11 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Source: Analize Imobiliare and Imobiliare.ro
9 The situation in the major cities - apartments for sale
It is significant that, in the final quarter of last year, all 11 Out of the analysed cities with more than 200,000 major cities (having more than 200,000 inhabitants) inhabitants, three have average prices of less than 1,000 subject to analysis recorded an increase in the average euro per net square metre: in Brăila, the sellers’ claims asking price for the sale of an apartment - unlike the three stand at 860 euro per square metre, in Ploiești they reach previous months, when decrease was also registered. The 940 euro per square metre, and in Galați 970 euro per quarterly growth margins stood, generally speaking, square metre. What is interesting is that Iași is not very far below the 2% threshold, only the Capital being an from this latter value, the capital of Moldova being exception to the rule, with an added 2.1%. Next in the price outperformed by Craiova and continuing to stay very close increase classification are Brașov (+1.9%) and Galați (+1.9%), to Oradea. then Oradea (+1.3%), Craiova (+1%), Brăila (+0.9%), Iași (+0.7%), Cluj-Napoca (+0.6%), Constanța (+0.6%), Timișoara Compared to the similar period of 2019, we can also note (+0.3%) and, respectively, Ploiești (+0.2%). positive differences in the sellers’ asking prices in all analysed major cities. Interestingly, the highest annual Following the generally positive evolutions recorded last growth occurred in Craiova (+8%), the capital of Oltenia quarter, the eight regional centres with average prices of being followed by Cluj-Napoca (+7.6%), Iași (+5.9%), Brașov over 1,000 euro per net square metre in the apartment (+5.8%), Oradea (+5.8%), Galați (+5.7%), Bucharest (+5.5%), segment (both new and old) maintained their positions in Constanța (+5.3%), Brăila (+4.1%), Ploiești (+2.7%) and, the classification. Thus, Cluj-Napoca continues to hold the respectively, Timișoara (+2.5%). Compared to five years ago, first place at national level (with an average of apartment prices in Cluj-Napoca are 66.1% higher approximately 1,810 euro per net square metre), the city (decreasing from a 70.5% level in the previous quarter); located on the Someș river being followed by Bucharest positive differences which are more significant than those (with 1,470 euro per square metre), Timișoara (1,270 euro registered in the Capital (+41.1%) can also be noticed in per square metre), Constanța (1,250 euro per square Oradea (+61.6%), Craiova (+53.2%), Brăila (+49.3%), Galați metre), Brașov (1,220 euro per square metre), Craiova (1,180 (+46.8%), as well as Brașov (+41.2%). euro per square metre), Iași (1,080 euro per square metre) and, respectively, Oradea (with 1,060 euro per square metre).
Price trends across main cities - apartments for sale
66.1% 41.1% 33.6% 37.8% 41.2% 53.2% 29.2% 61.6% 46.8% 27.6% 49.3%
7.6% 5.5% 2.5% 5.3% 5.8% 8% 5.9% 5.8% 5.7% 2.7% 4.1%
0.6% 2.1% 0.3% 0.6% 1.9% 1% 0.7% 1.3% 1.9% 0.2% 0.9%
1,810 1,470 1,270 1,250 1,220 1,180 1,080 1,060 970 940 860
Cluj-Napoca București Timișoara Constanța Brașov Craiova Iași Oradea Galați Ploiești Brăila
Source: Analize Imobiliare and Imobiliare.ro Price change over last 5 years % Price change over last 12 months % Price change over last 3 months % Median price per sq.m. (€)
10 Rankings: the evolution of asking prices, apartments for sale
Just as in the past 12 months, in Q4 2020, none of the In spite of the variations registered last quarter, the country’s major regional centres joined the ranking of national classification of county seats where the most county seats with the most significant price growths in expensive apartments can be found remained the apartments segment. Thus, the highest price growth unchanged. Thus, the first position in the classification is in the analysed period, respectively 5.6%, took place in still held by Cluj-Napoca, with an average price of 1,810 Miercurea-Ciuc, up to an average of 1,080 euro per net euro per net square metre), and on the next positions we square metre - the Harghita county seat thus exceeding can find Bucharest (at 1,470 euro per square metre), the threshold of 1,000 euro per net square metre. With a Timișoara (at 1,270 euro per square metre), Constanța (at 5.6% increase, up to 830 euro per net square metre, 1,250 euro per square metre) and, respectively, Brașov (at Slobozia is on a par with Harghita, whereas Călărași is 1,220 euro per square metre). second in a classification of price increases (+3.6%, up to 770 euro per square metre), being followed by Reșița Regarding the classification of cities with the cheapest (+3.5%) and, respectively, Giurgiu (+2.4%). apartments, it has undergone certain changes compared to the previous quarter: the first one is still Reșița (where Out of the analysed county seats, there were a few which the sellers’ average asking price reached 600 euro per registered price drops in the past quarter - with the square metre), whereas Alexandria (620 euro per square mention that these negative variations stood, with only metre) and Giurgiu (650 euro per square metre) are no one exception, below the 1% threshold. Thus, first in the longer on equal positions. Călărași can no longer be found classification of price decreases is Vaslui, with a minus of in this classification, being replaced by Piatra Neamț, 1.1% (down to 850 euro per net square metre), the city from having a value equal to that from Satu Mare (760 euro per Moldova being followed by Alexandria (-0.4%), Zalău square metre). (-0.2%, down to 790 euro per square metre) and, respectively, Sfântu Gheorghe (-0.1%, down to 870 euro per square metre).
Top price increases per sq. m +5.6% +5.6% +3.6% +3.5% +2.4% Price change over last 3 months 1,080 € 830 € 770 € 600 € 650 € Miercurea-Ciuc Slobozia Călărași Reșița Giurgiu
Top price decreases per sq. m 1.1% 0.4% 0.2% 0.1% 0% Price change over last 3 months 850€ 620€ 790 € 870 € 810 € Vaslui Alexandria Zalău Sfântu Gheorghe Focșani
Maximum price per sq. m. 0.6% +2.1% +0.3% +0.6% +1.9% Price change over last 3 months 1,810 € 1,470 € 1,270 € 1,250 € 1,220 € Cluj-Napoca București Timișoara Constanța Brașov
Smallest price per sq. m. +3.5% 0.4% +2.4% +1.8% +1.3% Price change over last 3 months 600 € 620 € 650 € 760 € 760€ Reșița Alexandria Giurgiu Piatra-Neamț Satu Mare
Source: Analize Imobiliare and Imobiliare.ro
11 TOP NEIGHBOURHOODS WITH THE HIGHEST PRICES SQUARE METRE, APARTMENTS FOR SALE Quarterly and annual changes)
Bucharest: position, surpassing Gheorgheni - Andrei Mureșanu Following the price variations registered last quarter, the (where a slight setback was noted, of 0.3%, down to 1,930 classification of Bucharest’s neighbourhoods with the euro per net square metre). In the analysed period, the most expensive apartments saw some changes, even if it Bună Ziua - Europa - Calea Turzii area remained on the is made up of the same exclusive areas in the Northern fourth place (with an added 2.3%, up to 1,860 euro per and central part of the Capital. The first position, just as in square metre), whereas Mărăști - Între Lacuri - Aurel Q3 2020, is held by the Kiseleff - Aviatorilor area, in spite of Vlaicu, was eliminated from the ranking by the Zorilor area a 3.4% decrease over three months, (down to 2,860 euro (with a 1.9% advancement, up to 1,840 euro per square per net square metre); this is followed by Herăstrău - metre) Nordului (where prices have gone down by 0.5%, to 2,710 euro per square metre), then by Aviației (+4.1%, down to Timișoara: 2,230 euro per square metre), which surpassed Dorobanți In Banat’s capital, the ranking of neighbourhoods with the - Floreasca (which saw a 3.3% decrease last quarter, down most expensive apartments available for sale has only to 2,140 euro per net square metre). In spite of a significant undergone one change compared to the previous three decrease, of 10.9% over three months, the Dacia-Eminescu months. In spite of a 2.1% decrease over three months, the area moved from the fourth place to the fifth (with an Ultracentral - Medicină - Piața Unirii area remained on the average of 1,960 euro per square metre). first position (with an average of 1,580 euro per net square metre), being followed by Central - Bălcescu - Take Cluj-Napoca: Ionescu - Piața Maria (1,450 euro per square metre, after an The ranking of the areas with the most expensive added 3.7% over three months) and Complex Studențesc - apartments in Cluj-Napoca has also seen some changes, Dacia - Elisabetin - Olimpia –Stadion (1,380 square metre, compared to the three previous months. The central and after a 0.3% increase). However, unlike the previous ultra-central area continues to hold the first position in the quarter, the Circumvalațiunii area (+2.9%, up to 1,370 euro classification, with an average price of 2,190 euro per net per square metre) is fourth in the ranking, having square metre (a 0.6% increase compared to the previous surpassed Torontalului (-3.8%, down to 1,310 euro per quarter), but after a 5.3% increase (up to a value of 1,980 square metre). euro per square metre), Plopilor has moved to the second
+10.5% 0.4% +8.5% +0.6% +5.6% București 3.4% 0.5% +4.1% 3.3% 10.9% 2,860 € 2,710 € 2,230 € 2,140 € 1,960 € Kiseleff-Aviatorilor Herăstrău-Nordului Aviației Dorobanți-Floreasca Dacia-Eminescu
+8.1% +7.7% +5.9% +11.4% +7.2% Cluj-Napoca +0.6% +5.3% 0.3% +2.3% +1.9% 2,190€ 1,980 € 1,930 € 1,860 € 1,840 € Central - Ultracentral Plopilor Gheorgheni - Andrei Bună Ziua - Europa Zorilor Mureșanu Calea Turzii
0% +8.8% +0.2% +3.6% 2.2% Timișoara 2.1% +3.7% +0.3% +2.9% 3.8% 1,580 € 1,450 € 1,380 € 1,370 € 1,310 € Ultracentral - Medicină Central - Bălcescu Complex Studentesc Circumvalațiunii Torontalului P-ța Unirii Take Ionescu - P-ța Maria Dacia - Elisabetin Olimpia-Stadion
Annual evolution Quarterly evolution Source: Analize Imobiliare and Imobiliare.ro
12 TOP NEIGHBOURHOODS WITH THE HIGHEST PRICES SQUARE METRE, APARTMENTS FOR SALE Quarterly and annual changes)
Brașov: metre) and, respectively Tomis III - Dacia - Tomis II - In spite of a 3.6% quarterly decrease in the sellers’ average Brotăcei - Tomis I (with an added 0.6%, up to 1,270 euro per asking price, in Drumul Poienii the most expensive square metre). However, the next two areas in the apartments from the foot of the Tâmpa mountain can still classification are no longer on equal positions: Casa de be found, such a housing unit costing 1,740 euro per Cultură - Tomis Plus has moved to the fourth place square metre at the end of last year. With an average value (following a 1.2% increase, up to 1,260 euro per square of 1,440 euro per net square metre, the Schei - Stupini area metre), and Tomis Nord - Inel II - Inel I - Primo – Far, to the remained second in the classification, whereas the Central fifth (with an average value of 1,250 euro per square - Brașovul Vechi -Blumana - Aurel Vlaicu area (with an metre). average of 1,340 euro per square metre, up by 2.4%) surpassed Centrul Istoric - Centrul Civic - Ultracentral - Iași: Dealul Cetății (+1.3%, up to 1,340 euro per square metre). In the capital of Moldova, the most expensive apartments The final position in top five continues to be held by available for sale can still be found in the Centru Civic - Tractorul - 13 Decembrie, with an average price of 1,250 Gară - Central - Ultracentral area: here, the sellers’ claims euro per square metre, following a 2.2% increase over increased by 1% over three months, reaching an average three months value of 1,400 euro per net square metre. In the Podul de Fier- Moara de Vânt area, asking prices increased by 1.2%, Constanța: up to 1,320 euro per square metre. In spite of a significant In the city located by the seaside, the Faleză Nord - quarterly decrease, of 4.4%, Copou still holds the third Trocadero - City Park Mall - Capitol - Delfinariu area position in the classification, with an average of 1,180 euro continues to rank first among the neighbourhoods with per square metre. The next two positions in the city’s the most expensive apartments, although the sellers’ ranking are held by the Tătărași - Tudor Vladimirescu area average asking price was only increased by 0.3% here last (with an increase of 1.9% over three months, up to 1,130 quarter, up to 1,450 euro per net square metre. The next euro per square metre) and, respectively, Podu Roș (with a two positions are held by Central - Ultracentral - Peninsula 1.4% decrease, down to 1,050 euro per square metre). (with a 0.4% decrease, down to 1,280 euro per square
2.1% +19.2% +11.6% +3.1% +8% Brașov 3.6% 0.1% +2.4% +1.3% +2.2% 1,740 € 1,440 € 1,340 € 1,340 € 1,250 € Drumul Poienii Schei - Stupini Central Centrul Istoric - Centrul Tractorul Brașovul Vechi Civic - Ultracentral 13 Decembrie Blumăna - Aurel Vlaicu Dealul Cetății
+3.9% +4.4% +4.9% +8.1% +5% Constanța +0.3% 0.4% +0.6% +1.2% +0.2% 1,450 € 1,280 € 1,270 € 1,260 € 1,250 € Faleza Nord Central - Ultracentral Tomis III - Dacia Casa de Cultură Tomis Nord Trocadero Peninsula Tomis II - Brotăcei Tomis Plus Inel II - Inel I City Park Mall - Capitol Tomis I Primo - Far Delfinariu
+4.8% +8.3% 7.4% +5.8% +4.5% Iași +1% +1.2% 4.4% +1.9% 1.4% 1,400 € 1,320 € 1,180 € 1,130 € 1,050 € Centru Civic - Gară Podul de Fier Copou Tătărași Podul Roș Central - Ultracentral Moara de Vânt Tudor Vladimirescu
Annual evolution Quarterly evolution Source: Analize Imobiliare and Imobiliare.ro
13 TIME ON MARKET AND NEGOTIATION MARGIN
Taking into account the average time needed to sell an Along with time on market, another element which is apartment, Bucharest can currently be considered the relevant to the dynamics of the trading activity is the most active market nationwide - a fact which is not at all negotiation margin - calculated as a difference between surprising, since this is where the highest demand can the final asking price and the trading price. In the final also be found, due to its demographic density. In the quarter of 2020, this indicator stood, without exception, country’s largest city, the time needed to trade an below the 5% threshold in the country’s major cities. apartment was, in the October - December 2020 interval, Currently, the highest negotiation margin, of 4.4%, can be of 35 days, significantly ahead of the other analysed cities. found in Cluj-Napoca, precisely where the apartments At the opposite pole, the longest sale period, respectively also have the highest asking price and require the most 86 days, was registered in Cluj-Napoca: - which can be time in order to be traded - all these indicating a corelated, of course, with the higher price level on the local slow-down in this market’s growth trend. The next places market. In the other analysed major cities, the time in the classification are held by Bucharest (with a 3.7% needed to trade an apartment reached 47 days (in Iași), 52 margin) and Iași (also 3.7%), Constanța (3.5%), Timișoara days (Brașov), 56 days (Constanța) and, respectively, 65 (3.2%), Brașov (2.3%). days (Timișoara).
Time on market Q4 2020 (days)
100 90 80 70 60 50 40 30 20 10 0 Cluj-Napoca Timișoara Constanța Brașov Iași București
Negotiation margin (% compared to the final asking price) - Q4 2020
Cluj-Napoca București Iași Constanța Timișoara Brașov 0.0 -0.5 -1.0 -1.5 -2.0 -2,3 -2.5 -3.0 -3,2 -3,5 -3.5 -3,7 -3,7 -4.0 -4,4 -4.5 -5.0
Source: Analize Imobiliare, taiem analize de lichiditate
14 DEMAND FOR RESIDENTIAL PROPERTIES FOR SALE (apartments and houses)
After the impact of the circulation restrictions imposed by Two-digit negative developments were recorded in the the authorities in the context of COVID-19, demand for other monitored regional centres, namely -20 in Timișoara residential properties resumed its growth in the (down to 12,900 unique visitors), -22% in Iași (down to 9,600 July-September period; however, the final quarter of last persons), -23% in Constanța (down to 11,400 potential year saw a decrease - a trend which can be explained, at buyers), -29% in Brașov (down to11,000 visitors) and, least in part, by the market’s seasonal cycles. Thus, respectively, -30% in Cluj-Napoca (down to 10,800 approximately 132,400 potential buyers searched, on persons). Imobiliare.ro, for apartments and houses in the major six
regional centres of the country. This figure indicates a However, compared to five years ago, the interest in decrease of approximately 14% compared to the three purchasing housing properties in the final quarter of 2020 previous months (when approximately 154,500 visitors was 27% higher, and a growth trend was noted in all six looked into such properties), and, compared to the similar major regional centres subject to analysis. Thus, during period of 2019, a rather similar difference can be noted, this period, the most significant growth was registered in respectively -16%. Iași (+60%), the capital of Moldova being followed by Brașov (+49%), Bucharest (+28%), Timișoara (+22%) and, Compared to the final quarter of 2019, the interest in the respectively, Constanța (+20%). Practically, the only procurement of residential properties indicates, in all six exception to the rule is represented by Cluj-Napoca, where major regional centres constantly monitored by Analize demand for residential properties stands at a level which Imobiliare, a decreasing trend. However, it is important to is very close to the one recorded five years ago, at a note that the lowest decrease in this regard, respectively difference of only -1%. -8% over 12 months, was seen in Bucharest, namely the country’s largest real estate market, where the number of potential buyers stood at 76,700 persons - namely six to eight times as much as in the other analysed major cities.
Demand for residential properties for sale houses and apartments, new and old
TOTAL
76,700 12,900 11,400 11,000 10,800 9,600 132,400 București Timișoara Constanța Brașov Cluj-Napoca Iași
8% 20% 23% 29% 30% 22% 16% Change over last 12 months %
28% 22% 20% 49% 1% 60% 27% Change over last 5 years %
* By demand, we refer to the potential buyers who generated Leads A lead is recorded when a visitor performs an action (views the for sale properties on the Imobiliare.ro portal, in a certain period. phone, sends an email to request more details, prints or saves your ad).
Source: Analize Imobiliare and Imobiliare.ro
15 DEMAND FOR APARTMENTS AND HOUSES IN 2020
An analysis of the evolution of demand in the major After the first fall month, which is known to be the most regional centres throughout 2020 indicates that, after the active in terms of real estate transactions, buyers’ interest impact of the measures taken by the authorities as a decreased slowly in October: Bucharest remained at over reaction to the novel coronavirus, this indicator has 80% of the volume recorded in January, whereas recovered to a rather good extent in the third quarter. Timișoara stood at over 75%, Iași, Constanța and Brașov at Thus, after they reached a low point in April, the interest in over 70%, and Cluj-Napoca, at a little over 60%. In the final available apartments and houses had visibly reverted in month of 2020, on the other hand, demand dropped September, when Bucharest had recovered below 70% in Bucharest and, respectively, below 60% in approximately 85% of the initial volume of demand, the other major regional centres of the country. whereas Timișoara stood at a little above 80%, Brașov, Iași and Constanța exceeded the 70% threshold, and Cluj-Napoca neared 65%.
120%
100%
80%
60%
40%
20%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
București Timișoara Cluj-Napoca Iași Constanța Brașov
Sursa: Imobiliare.ro
16 DEMAND FOR APARTMENTS AND HOUSES IN 2020 (Bucharest + Ilfov)
However, it is important to mention that, at the end of the properties in the country’s largest city remained at a year, demand for housing properties is traditionally lower similar level with the one recorded in the previous year, than in the autumn months - particularly compared to generally varying around the threshold of 40,000 September. In this context, it is significant that, both in potential buyers. In Cluj-Napoca, on the other hand, the Bucharest, and in Cluj-Napoca, the level of demand in demand volume remained below the one registered in December 2020 is, in fact, very close to 2019 - even 2019 from March until December, with a maximum of indicating a slight increase in the first case. approximately 6,000 potential buyers reached in September.
Worth mentioning is the fact that, starting in the month of May, the interest in the procurement of residential
Bucharest
60,000
50,000
40,000
30,000
20,000
10,000
0
2019 2020
Cluj-Napoca 10,000
8,000
6,000
4,000
2,000
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Source: Imobiliare.ro
17 DEMAND FOR APARTMENTS AND HOUSES IN 2020 (Bucharest + Ilfov county)
After it experienced the impact of the circulation In the county of Ilfov, the interest in houses and land restrictions, demand for real estate properties in the reached the low point in March, and the interest in Capital started recovering as early as in May, namely apartments did so in April - without, however, going below immediately after the transfer to the state of alert. Thus, 60% in any of the three market segments. What is the interest in apartments increased, from one month to interesting is that demand for all these types of properties another, from approximately 40% to approximately 70% of exceeded the level seen at the start of the year as early as the level registered in January, whereas houses and land in May, the maximum points of the year 2020 being plots neared (and even exceeded) the 100% threshold. In reached in June for apartments (120% of the January level), the remaining part of the year, demand curves were quite in July for houses (almost 140%) and, respectively, smooth for the three market segments, with a maximum September for land (almost 180%). In the areas around the of over 80% reached in September of the apartments Capital, we can also note a slightly decreasing trend of market. However, at the end of the year, a slightly demand in December: land plots continued to stay decreasing trend was seen, as apartments dropped below approximately 20% above the January level, houses 70%, and houses and land plots stood at approximately dropped slightly below 100%, and apartments stood at 80% (and a little over). approximately 70%.
Demand index, București
120%
100%
80%
60%
40%
20%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Apartments Houses Land
Demand index, Ilfov county
200%
150%
100%
50%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Apartments Houses Land
Source: Imobiliare.ro
18 DEMAND ACCORDING TO PROPERTY TYPE (Cluj-Napoca + Cluj county)
Just like in the Capital and in the surrounding areas, in the Compared to January, demand for apartments in the rest city located on the Someș river we can also note a of Cluj county dropped to a little below 30% in April, significant increase in terms of interest for houses and whereas houses remained close to the 50% threshold and land plots after the end of the state of emergency. land plots somewhere at 75%. Immediately after the state Following the low points recorded in April, the high points of alert passed, however, all three market segments of demand were reached in June for land (approximately recorded visible growth and so, in September, apartments 90% of the level of January), in July for houses (over 85%) had recovered approximately 80% of the demand and, respectively, in September for apartments recorded at the start of the year, whereas interest for (approximately 60% of the volume recorded at the start of houses was almost 20% higher, and interest for land 2020). At the end of the year, land plots were in complete almost 60% higher. Towards the end of the year, a slight opposition to the decreasing trend in terms of demand, decrease in terms of demand was noted for all three types standing at over 80% of the level recorded in January, of properties, with apartments standing at approximately compared to over 60% for houses and, respectively, over 60% of the level reached in January, houses at a little 40% for apartments. below 100%, and land at almost 120%.
Demand index, Cluj-Napoca
120%
100%
80%
60%
40%
20%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Apartments Houses Land
Demand index, Cluj county, excl. Cluj-Napoca
200%
150%
100%
50%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Apartments Houses Land
Source: Imobiliare.ro
19 DEMAND ACCORDING TO FACILITIES (Bucharest + Ilfov county)
Comparing the interest for apartments in general with the Around the Capital, the best evolution in terms of demand one for housing properties which have a garden and, can be noticed in the segment of apartments with a respectively, a pool, in Bucharest we can discern a notable garden: from a low point of 50%, reached in April, difference. Thus, after the recovery registered in May, the compared to January, they neared the 160% threshold in development curve in terms of demand in the apartments August, and then, in December 2020, they practically segment was rather stable, with a maximum of over 80% reached the same level as at the start of the year. (compared to the January level) reached in September. On Apartments with a garden had, for comparison purposes, the other hand, apartments with a pool reached a climax a much more moderate trajectory: they reached the high of over 160% in terms of demand in August, whereas point of demand in October (110% of the January level) and housing units with a garden reached 120% in September. then, in December, they went down towards 50%. By We can, of course, consider that these differences are not comparison, interest for apartments in general reached a seasonal, but that they can be directly corelated with the maximum of 120% in June, and in December it stood at changes occurring in the consumers’ behaviour as a result approximately 60%. of the state of emergency.
Bucharest 200%
150%
100%
50%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
apartment with garden apartment with pool all apartments
Ilfov county 200%
150%
100%
50%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
apartment with garden apartment with pool all apartments
Source Imobiliare.ro
20 DEMAND ACCORDING TO PROPERTY TYPE (Prahova county + Brașov county)
However, an even more spectacular increase in the In the county of Brașov we can also notice a strong demand for land plots and houses were recorded in a increase regarding the interest for land, which reached a tourist area such as the county of Prahova. Regarding level of 160% in terms of demand, in the month of May construction plots, the Imobiliare.ro data indicate that (compared to January 2020); after reaching a maximum of potential buyers’ interest reached 170% in May (compared approximately 190% in August, this type of properties to January), in August it reached a maximum of 250%, and, returned to approximately 120% in December. Demand for towards the end of the year, it stood at over 150%. houses has also registered a more significant growth, Significant growth was also registered in the house although less abrupt, as it reached a maximum of 130% in segment, which reached a climax of 200% in August, as July and decreased to approximately 80% at the end of the well, and in December 2020 it stood at approximately year. By comparison, the apartments segment reached a 120%. By comparison, in the last month of the summer, the high point of approximately 80% in August, but in apartments managed to reach a little above the 100% December 2020 it stood at less than 60% of the level threshold. recorded in January.
Prahova county
300%
250%
200%
150%
100%
50%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Apartments Houses Land
Brașov county
200%
150%
100%
50%
0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Apartments Houses Land
Source: Imobiliare.ro
21 REAL ESTATE SALES, NATIONWIDE
In spite of the challenges generated by the situation in the The fact is significant that, regarding exclusively the healthcare sector, 2020 was, on the whole, a year of number of individual units purchased - which can be growth in terms of the trading activity on the real estate directly corelated with the purchases of housing market. Thus, the data published by the National Agency properties - we can note an enhancement of the trading for Cadastre and Land Registration (ANCPI) indicates that, activity: thus, the ANCPI data indicates an 8.2% growth on during the course of last year, a total of 602,805 properties this segment, from 113,752 properties in 2019, from 123,126 were purchased at national level - which is equivalent to a in 2020. Worth mentioning is the fact that, in both 2019 growth of 11.6% (or 62,625 units) compared to 2019, when and 2020, most sales were registered in the month of 540,180 sold properties were registered. Noteworthy is the October (58,334, compared to 83,675), and the least in fact that, according to the official statistics, the number of January 2019 (30,733) and, respectively, April 2020 (27,021). real estate properties existing nationwide is of On the other hand, in December 2020, at the level of the approximately 40 million. entire country, 77,355 properties were traded, 26,865 more than in the similar period of the year 2019 - which figure is equivalent to a 53% increase over 12 months.
„In 2020, more sold properties were registered than in 2019, the most prolific months for the real estate trading activity being October (over 83,000 properties) and December (over 77,000).”
Sold properties
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Source: ANCPI, data processed by Analize Imobiliare
22 REAL ESTATE SALES PER COUNTIES
OLT 2,452 According to the official statistics, Bucharest and Ilfov county are, by
CARAȘ-SEVERIN 3,515 far, the markets with the strongest trading activity, as they cumulate
COVASNA 3,667 27% of total properties sold nationwide, respectively 163,607. On the other hand, the Capital, Ilfov, and the next five counties in the SĂLAJ 3,735 classification hold a 51% share of the properties traded at country level, TELEORMAN 5,334 respectively a total of 306,348 units. MEHEDINȚI 5,526
BISTRIȚA-NĂSĂUD 5,561 Throughout the course of last year, most properties were purchased in GIURGIU 5,727 Bucharest (109,274), the country’s capital being followed, in this GORJ 5,764 regard, by the counties of Ilfov (with 54,333 contracts), Cluj (36,764), VÂLCEA 5,767 Brașov (31,293), Timiș (29,884), Constanța (22,660) and Iași (22,140). At IALOMIȚA 5,826 the opposite pole, the lowest number of properties was traded in Olt VASLUI 6,018 (2,452), Caraș-Severin (3,515), Covasna (3,667) and Sălaj (3,735). By
TULCEA 6,238 comparison, in 2019 there were records of 95,557 properties sold in
ALBA 6,561 Bucharest, next in the ranking being the counties of Ilfov (47,555), Timiș (31,328), Cluj (29,818), Brașov (29,351), Iași (18,206) and, HUNEDOARA 7,039 respectively, Constanța (17,312). On the other hand, the counties with CĂLĂRAȘI 7,208 the weakest trading activity were HARGHITA 7,494
BRĂILA 7,601 Olt (1,390), Sălaj (3,290), Alba (3,787) and, respectively, Gorj (3,826). The VRANCEA 7,681 above indicate that, in most counties with the strongest trading NEAMȚ 8,886 activity last year, more properties were sold than in 2019. Thus, MARAMUREȘ 9,000 Bucharest and the county of Ilfov recorded similar growth margins, SIBIU 9,258 respectively 14.3% compared to 14.2%, the increase being of 23.3% in BUZĂU 9,269 the county of Cluj, at 6.6% in Brașov, at 31% in Constanța and,
BOTOȘANI 9,643 respectively, at 21.6% in Iași. Practically, the only exception to the rule
BACĂU 10,283 was represented by the county of Timiș, given that a 4.6% setback was
ARGEȘ 10,773 registered in the trading activity in the country’s South-Eastern county, compared to the previous year. Following such developments, SATU MARE 10,891 Timiș moved from the third place to the fifth within the annual GALAȚI 11,218 classification drawn up by ANCPI, being surpassed by the counties of ARAD 11,275 Cluj and Brașov. DÂMBOVIȚA 11,985
MUREȘ 13,442
PRAHOVA 14,146
SUCEAVA 15,025
BIHOR 15,886
DOLJ 16,763
IAȘI 22,140
CONSTANȚA 22,660
TIMIȘ 29,884 Source: ANCPI, data processed by Analize Imobiliare
BRAȘOV 31,293
CLUJ 36,764
ILFOV 54,333
BUCUREȘTI 109,274
23 SALES OF INDIVIDUAL UNITS (Nationwide + Bucharest)
Regarding the number of purchased individual units, out In the Capital, the low point of the trading activity in the of which Analize Imobiliare estimates that approximately individual units segment was reached in May, when 80% are apartments, the official data highlight an obvious approximately 1,500 properties were sold. In the months of comeback trend after the lockdown period. Thus, after July and September, the number of purchased properties reaching a low point of the trading activity nationwide in practically stood at a level similar to the one recorded in April (when the number of concluded contracts went February, respectively over 3,000 sales agreements. The below the level of 6,000), in July a similar level to that of high point on this market was reached in October, when 2019 was reached, respectively approximately 10,000 the number of traded properties neared the threshold of properties. Worth mentioning is the fact that the growth 5,500; what is interesting is that, after a decrease trend was more emphasized in the final quarter of the registered in November, this indicator bounced back to year: in October, the individual units purchased surpassed approximately the same level. the threshold of 16,000 and, in December, they came close to 18,000.
National 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Bucharest
6,000
5,000
4,000
3,000
2,000
1,000
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Source: Analize Imobiliare and Imobiliare.ro
24 SALES OF INDIVIDUAL UNITS (Ilfov + Cluj counties)
In the individual units segment, in the county of Ilfov we In Cluj county, maximum interest for the housing property can note a rather different evolution, both compared to market was reached in February, when over 1,500 Bucharest, and with the situation existing nationwide. individual units sold were registered here. After the start of Thus, between the months of March and June, the trading the COVID-19 epidemic, transactions within this category activity on this market segment was maintained rather went below 1,000 in March, and then to less than 800 in stable, namely between 550 and (a little over) 600 April, less than 700 in May and, respectively, less than 600 properties sold monthly - a level similar or even higher (in in June. However, it is worth mentioning that the results the summer period) than the one indicated by the results registered in all these four months were, in fact, similar to from 2019. After it decreased, in July-September, around the ones in 2019. On the other hand, in the second half of the threshold of 400 operations, the number of individual the year, a growth trend was recorded: in August, units traded went above 600 contracts once again in approximately 900 individual units were traded, in October, and in December it went beyond the threshold of October approximately 1,100, and, in December, a little 650. over 1,400 properties were sold.
Ilfov county 800
600
400
200
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Cluj county
2,000
1,500
1,000
500
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Source: ANCPI, data processed by Analize Imobiliare
25 NUMBER OF PROPERTIES FOR SALE IN THE MAJOR CITIES
Compared to the previous quarter, the total offer of seaside being followed by Bucharest (an added 5.7%, up to apartments and houses built before the year 2000, 6,550 offers) and, respectively, Brașov (a 2.8% growth, up to available for sale in the six major regional centres of the 900 listings). The exception to the rule is represented by country, was, in Q4 2020, 18% lower - it stood, more exactly, Cluj-Napoca, where the total number of residential at 13,690 offers, compared to 16,740 in the three previous properties was reduced by 4.6% over 12 months, attaining months. Against the situation from the healthcare sector, 2,030 offers. but in relation to the similar period of 2019, a positive difference of 4.5% can be noted. A growth trend can also be noticed with regard to the number of properties newly placed on the market, namely During the course of the past 12 months, five of the six 6,400 - namely 8.3% higher than in the similar period of major cities analysed registered increase regarding this 2019. In this case also, a growth trend occurred in five of indicator - however, they all stood below the 10% the six major cities subject to analysis, namely in Iași threshold. Thus, the highest growth, of 8.6%, took place in (+22.4%), Bucharest (+10.8%), Constanța (+9.5%), Brașov Timișoara, where 2,080 residential properties were put up (+6.8%) and, respectively, Cluj-Napoca (+1.6%). In Timișoara, for sale last quarter; a 7.2% increase was felt, on the other on the other hand, this indicator practically stands at the hand, in Iași, where a total of 1,090 listings was reached in same level as in the previous year. The number of offers October - December. newly placed on the market reaches 3,110 in the Capital, 1,060 in Cluj-Napoca, 770 in Timișoara, 550 in Iași, 470 in An annual growth of 7% was recorded in Constanța (where Constanța and, respectively, 440 in Brașov. 1,030 properties were put up for sale), the city by the
Properties listed for sale in the major cities in Q4 - 2020 Apartments and houses built before 2000
6,550 New listings All listings for sale
TOTAL 3,110 13,690 2,080 2,030 6,400 1,060 1,090 1,030 770 900 550 470 440
București Timișoara Cluj-Napoca Iași Constanța Brașov TOTAL
New listings 10.8% 1.6% 0.1% 22.4% 9.5% 6.8% 8.3%
All listings for sale 5.7% 8.6% 4.6% 7.2% 7% 2.8% 4.5%
Change over last 12 months
Source: Analize Imobiliare and Imobiliare.ro
26 APARTMENTS AND HOUSES NEWLY PLACED ON THE MARKET (Bucharest + Cluj-Napoca)
In the country’s capital, an analysis of the number of In Cluj-Napoca we can also note a recovering trend in the properties newly placed on the market (old houses and number of new listings on the secondary market, apartments sold by individuals) indicates that, in spite of although this manifested itself in a slightly different way the fact that the effects of the situation in the healthcare compared to Bucharest. Against the background of the sector were felt, this indicator did, however, recover, in the state of emergency, the minimum level of this indicator second half of the year. Thus, the number of new listings was also reached in the city located on the Someș river in went below the threshold of 1,000 in April, although it April - at which time less than 450 new offers were placed stood above 1,500 in the similar period of the previous year. on the market, compared to 600 in the similar period of However, a recovery occurred starting in May, the high 2019. A return to over 600 new offers listed on a monthly point on this market being reached in June basis occurred starting in May, and afterwards this (approximately 1,900 new offers). Although in the final indicator maintained a relatively stable line until autumn. quarter of 2020 this indicator followed a downward curve, It only surpassed the 2019 level in October, and at the end its evolution was entirely similar to that of 2019 - the same of the year it stood slightly below. as the level registered at the end of the year.
Bucharest
2,500
2,000
1,500
1,000
500
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Cluj-Napoca
800 700 600 500 400 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Source: Analize Imobiliare and Imobiliare.ro
27 APARTMENTS AND HOUSES NEWLY PLACED ON THE MARKET (Iași + Timișoara)
In the capital of Moldova, the minimum number of offers In the city located on the Bega river, the gap compared to newly entered on the secondary residential market was 2019 was somewhat more pronounced than in Iași: in April, reached in April, when less than 200 such listings were the number of houses and apartments put up for sale for registered - compared to almost 300 in the similar period the first time neared 200, whereas, in the similar period of of the previous year. A recovery in this regard occurred in the previous year, it stood at approximately 450. A recovery May, when the new offers amounted to approximately 330, occurred here starting in May, as well, when the local very close to the level of the 350 attained 12 months before. market reached the level of 400 new offers, and later, in The 2019 level was surpassed in June, and, afterwards, the June, it exceeded the level of 450 listings, more than in the analysed indicator returned to a point located slightly similar period of the previous year. The analysed indicator below it, almost until the end of the year. However, in also stood above the results recorded in 2019 in December, the new market listings were more numerous September and in October (over 450 and, respectively, a than in the similar period of the previous year. little under 400 offers), with 2020 practically ending at the same level as the previous year.
Iași
400
300
200
100
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Timișoara
800
600
400
200
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Source: Analize Imobiliare and Imobiliare.ro
28 RESIDENTIAL CONSTRUCTIONS, COMPLETED HOUSING PROPERTIES
Concerning the construction of housing properties, the units. By comparison, in the similar period of the previous latest data published by the National Institute of Statistics year, fewer units were completed nationwide, namely (INS) indicates that, in the third quarter of the current year, 46,437. These figures indicate an annual growth of 4.4% - a number of 18,725 housing units were completed in the decreasing from a (positive) difference of 9.4% recorded in entire country - which represents a growth of the first semester of 2020. approximately 26% compared to the previous three months, when 14,846 housing units were delivered for use. In this context, the total number of deliveries of housing Compared to the similar period of the previous year, when properties completed last year could be close to the one of 19,233 housing units were delivered nationwide, a slight 2019, or even slightly higher. Worth mentioning would be decrease can be noted, of 2.6%. the fact that 67,512 housing properties were completed nationwide at that time, approximately 13% higher than in Following the evolution recorded in the July-September 2018; this volume was also higher than the ones recorded period, the volume of deliveries of housing properties in in 2008 and, respectively, 2009 - thus representing a the first nine months of this year stood at a total of 48,490 record of the past 29 years.
„In the first nine months of 2020, the number of housing properties completed nationwide was 4.4% higher than the similar period of the previous year, after 2019 brought a record of deliveries since the Revolution.”
30,000
25,000
20,000 Average over the last four quarters
15,000
10,000
5,000
0
Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q3 - -Q3 - -Q3 - -Q3 - -Q3 - - -Q3 - -Q3 - Q3 - Q3 7 1-Q1 1 -Q3 7 8 8 9 9 0 0 1 1 2 2 3 3 4 4 5 5 6 7 7 8 8 9 9 0 9 0 0 1 1 1 1 1 1 1 1 1 1 1 6 1 1 1 1 1 1 1 0 0 0 0 0 0 1 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Source: INS, data processed by Analize Imobiliare
29 BUILDING PERMITS FOR RESIDENTIAL BUILDINGS
Another indicator which is important for the evolution of Given the decrease in the number of permits issued the residential market is represented by the number of during the state of emergency, this indicator saw, over the permits issued for housing buildings. According to the course of the first semester of this year, a setback of latest data published by the National Institute of Statistics approximately 5% compared to 2019, from 32,200 to 30,612 (INS), 12,734 approvals were issued nationwide in the third such approvals. However, worth mentioning is the fact quarter of 2020. Worth mentioning is the fact that this that, against the background of the positive evolution figure is equivalent to a significant growth, of 38%, registered in the third quarter of last year, the gap in compared to the previous quarter - when only 9,233 relation to 2019 lessened - standing at 12% in Q2 2020. construction permits were issued. And, compared to the Although the lower interest in obtaining construction similar period of the previous year, when 11,855 permits permits for residential buildings may indicate a future were issued, a growth trend can be noted for the analysed decrease in the construction activity on this market, we indicator. We are, however, speaking of a more moderate have yet to see how things will be after the results for last growth, of 7.4%, which is all the more important, if we have year’s final quarter are published. in view the fact that a decrease of almost 21% was recorded in Q2 2020, compared to 2019, against the background of the challenges raised by the situation in the healthcare sector.
20,000 Average over the last four quarters 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
-Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 -Q1 -Q3 7 1 1 -Q3 6 6 7 8 8 9 9 0 0 1 1 2 2 3 3 4 4 5 5 6 7 7 8 8 9 9 0 9 0 1 1 1 1 1 1 1 1 1 1 1 6 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 1 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Source: INS, data processed by Analize Imobiliare
30 PRIMARY MARKET (Bucharest and Ilfov County)
Regarding the number of new apartments available for In Ilfov, the year 2020 had a strong start, with a total of sale, the Bucharest data indicates that a minimum level in 3,900 new apartments put up for sale, representing a 30% this regard was reached in the second quarter of 2020, growth compared to the 3,000 housing units available in which is precisely in the state of emergency period; at that the final quarter of the preceding year. It is noteworthy time, the offer in this category was reduced by that the offer on this market segment maintained its approximately 9.4% compared to the previous quarter, growth trend in the first nine months of the year, but it respectively from 10,600 to 9,600 properties. However, the was slightly reduced in the fourth quarter, from 4,200 to number of new housing properties available for sale 4,000 properties - which evolution can, however, be increased in the second half of the year, and so, at the end considered seasonal. In the Capital’s surrounding areas, of 2020, it had once again reached its start-of-the-year we can also notice a decrease in the number of projects level. Whereas the number of residential projects with with housing units under construction: from a total of 60 completed units available for sale was maintained in the first two quarters of 2020, it went to 50 in the second relatively constant in Bucharest, with a slight decrease half of the year. The projects with completed housing (from 140 to 130), in the second half of the year higher properties, on the other hand, were reduced from 70 to 50 variations were registered with regard to projects under in the second quarter, a level which was maintained until construction (from 180 to 150, and then to 160). the end of the year.
Apartments for sale 16,000
14,000 3,000 3,900 4,000 12,000 3,600 4,000 4,200 10,000
8,000
6,000 11,000 10,000 10,600 9,900 10,000 10,600 4,000
2,000
0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 București Ilfov county
Projects put up for sale according to the construction stage 500 450 70 400 50 50 350 60 50 50 70 60 300 50 50
250 110 140 140 130 130 200 150
100 190 180 150 160 160 50 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Under construction in Bucharest Completed in Bucharest Under construction in Ilfov county Completed in Ilfov county
Source: Analize Imobiliare
31 ABOUT US
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32 REAL ESTATE MARKET ANALYSIS
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