ROMANIAN RESIDENTIAL MARKET REPORT
Q3-2019 CONTENTS
4 Market overview 5 Residential price index 7 Quarterly trend of the residential property prices 11 Price trends across main cities 11 Price trends across neighborhoods 24 Demand for residential properties for sale 27 Number of listings - for sale 29 Number of listings - for rent 30 Sale transactions 31 Transactions in main cities 37 Time on market 38 Negotiation margin 39 Construction of dwellings 42 About us
LESS IS MORE OR HOW THE ROMANIAN RESIDENTIAL MARKET MATURES
Less is more - here is a concept which is perfectly suitable for the evolution of the Romanian residential market in the first ten months of the year 2019, a period characterized by a certain fluctuation in the number of apartment transactions, both upwards and downwards, as well as by a constant increase in the housing loans balance, by a creditworthy demand, generated by customers who are very well-informed about all aspects of real-estate transactions.
Less apartment transactions in the first ten months of 2019 - 27,709 in Bucharest, compared to 29,612 in the same period of 2018, according to the data provided by the National Agency for Cadastre and Real Estate Advertising (Romanian: Agenția Națională de Cadastru și Publicitate Imobiliară, ANCPI) - this is not a sign of economic situation worsening, given the ongoing growth of housing loans; it is, instead, a characteristic of residential market maturity. The situation is the same on all main residential markets in Romania. Nationwide, apartment transactions decreased in the first ten months of 2019, compared to the same period of 2018, but the total balance of housing loans saw to public transport, closeness to schools, as well as social a constant, unabating growth, reaching, in October 2019, facilities. They no longer merely buy square meters, they the level of 111.1 billion RON, compared to 102.2 billion RON are interested in the quality of the built area, in the in October 2018. partitioning of the home, in the services provided by the developer. For instance, modern technology, such as the A residential market reaches maturity through slow smart-home systems and the charging stations for growth, with minimum fluctuations in one direction or electrical cars, is a criterion which is becoming another, without any spectacular developments in wither increasingly important for the customers. The entire living sense, and this is precisely what is currently happening in experience matters to them, not just the property itself. Romania. The evolution in the prices of apartments, without any large variations, also represents a good The progress of the Romanian residential market towards indicator concerning this ever more pronounced trend its maturity is a process that will continue in the following towards residential market maturity. Nationwide, asking period, the developers whose offer is adjusted to these prices increased by 1.9% in October versus September, requirements are the ones who will be successful, and the according to the Imobiliare.ro index, whereas the increase customers will have the chance to enjoy properties where compared to October 2018 is of 5.5%. they can feel at home.
This is a healthy growth, generated by the law of Mauricio Mesa Gomez creditworthy demand and by the principle of supply Country Manager tailored to customer requirements. Upon making a Cordia România purchase decision, customers are guided by a mix of criteria, which includes elements such as the quality of design, fair prices, green areas, good location, easy access
3 MARKET OVERVIEW
compared to last year, which means that, in the long term, the supply of old properties will be tightening even more. Competition for the purchase of such properties will become even tougher, resulting in a price growth. In Bucharest, the price of old apartments grew by approximately 4% over the past year, first of all because of the drop in supply for this market segment.
New apartments are less accessible Over the past two years, we have been monitoring the new residential projects in the country’s major markets, which projects are currently in a licensing process or under construction. Although the number of apartments existing for sale within new properties was, in the third quarter, comparable to the preceding one, we estimate that fewer units were sold, and new apartments now have The positive evolution of demand has led to the a longer time on market. We identified two main causes of relaunch of price increase this new slowdown on the new properties market: the The positive evolution of demand, registered in the more pronounced and accelerated growth in prices, second quarter of 2019, was maintained in the third compared to the old market and, respectively, the delays quarter, to the extent that approximately 175,000 potential occurring in the completion of residential developments. buyers from the six major cities interacted directly with In Bucharest, the asking prices for the new apartments the sellers through the imobiliare.ro portal - which available for sale increased, over the past year, by 9.1%, represents an annual growth of 16%. This confidence in significantly above the national 6.1% average (however, the market is also reflected by the increase in the sale of note must be made of the fact that several projects real properties registered by ANCPI; over the last four located in the Capital’s central and Northern area were put months (July-October), approximately 200,000 properties up for sale). were traded nationwide, compared to 180,000 in the similar period of 2018. As we have mentioned before, another obstacle for those Against this background, house prices returned to a more who purchase new homes is the 19% VAT. That is due to pronouncedly ascending trajectory, after last year’s the fact that, in the high-rated areas of the major cities, moderate evolution; the quarterly growth rate thus stood the more spacious apartments (having three or four at a 3.2%, compared to an additional 0.4% in the previous rooms), but even the ones with two rooms, exceed the quarter. The price difference over 12 months also reached RON 450,000 threshold. The higher prices which can be 6.1% in the third quarter, compared to 3.5% in the previous found on the new properties’ market, correlated with the one. additional taxation of the homes within this category, push buyers towards older apartments - a phenomenon Demand weakening on the old properties market which can only have negative effects, for both the new Housing sale is, surely, closely related to the demand and residential segment, and for the market on the whole. supply existing on the market. The relaunch in demand, as it was felt in the last two quarters, put new pressures on Dorel Niță the existing supply, which had resumed its growth at the Head of Data and Research, Imobiliare.ro start of the year. However, last quarter, the supply in the old properties segment stagnated nationwide, compared to the previous year. In addition to the properties which were already for sale, the number of offers which entered the market over the past three months was 5% less
4 RESIDENTIAL PRICE INDEX
In the third quarter of 2019, asking prices for residential 12 months. The more than double advance registered on properties in Romania increased, on average, by 3.2% the new apartments market can be explained not by the compared to the previous quarter, according to the data price growth proper registered for the new homes already centralized by Analize Imobiliare. Although it is not available on the market, but especially by the fact that the substantial, this progress is higher than the average new residential stock was supplemented over the last increase registered in the first two quarters of the year, period by residential properties having a better location and even in the four quarters of the previous year. and higher quality - which is, of course, equivalent to a higher price level. However, what is worth mentioning is that this acceleration in price growth rate is not felt uniformly Concerning trading prices for housing, the newest data nationwide. Thus, the data of Analize Imobiliare indicates published by Eurostat and the National Institute of that the most important contribution to the general Statistics (INS) reveals, for the second quarter of 2019, a progress of listing values was specifically that of the new 1.6% quarterly growth and, respectively, a 4.2% annual apartments from Bucharest. The housing units within this growth at the level of the European Union. For the local category thus stand at a price level which is 9.1% higher market, the quarterly growth was of 1.6%, therefore equal than the one valid in the similar period of the previous to the average registered in the EU states. The 12-month year. By comparison, the difference valid for the old price difference was, however, of 4.8%, so it was somewhat apartments segment in the Capital is significantly lower - higher than the European average. more precisely, we were dealing with an additional 4% for
“The most significant contribution to the general advance of listing values was, specifically, that of the new apartments in Bucharest, given the addition of housing units to the new residential properties segment.”
Residential price index (2015=100)
250
200
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100
50
Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 4- 5- 6- 7- 8- 9- 0- 1- 2- 3- 4- 5- 6- 7- 8- 9- 201 200 200 200 200 200 200 201 201 201 201 201 201 201 201 201
Romania (Analize Imobiliare and Imobiliare.ro)
European Union (Eurostat, EU28))
Romania (INS) Source: Analize Imobiliare, Imobiliare.ro and Eurostat
5 EVOLUTION OF RESIDENTIAL PROPERTY PRICES
After it stood at 0.8% in the first quarter of the year 2019 The advance registered in the past quarter also led to an and, respectively, at 0.4% in the second one, the quarterly increase in the annual growth margin of residential price growth rate reached 3.2% in the third quarter. Thus, property prices. This last indicator thus stood at a 6.1% the new apartments in the Capital generated the highest level, compared to the +3.5% of this year’s second quarter - growth in housing prices registered in Romania over the when the lowest level had been reached in this regard past two years or so. Thus, whereas in the first quarter of over the past four years, namely since the start of 2015. 2017, the prices of residential properties increased by Currently, the annual price growth margin is very close to approximately 4% nationwide, they registered a 3.1% the level recorded in the first quarter of 2018, when growth in the following three months. housing properties were 6.4% more expensive than in the similar period of the previous year.
Quarterly rate of change in prices 20
15
10
5
0
-5
-10
-15
-20
-Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q1 -Q3 -Q3 -Q3 -Q3 -Q3 -Q3 1 -Q3 -Q3 -Q3 -Q3 -Q3 -Q3 -Q3 -Q3 -Q3 6 7 8 9 0 1 2 3 4 5 6 7 8 9 5 6 7 8 9 0 1 1 1 2 1 3 4 1 5 6 1 7 8 9 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 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
Yearly evolution
15 13.4 13.0 12.5 12.4 12.9
9.9 10 9.7 9.1 7.1 6.3 6.4 6.1 5.2 5.6 5.3 5 4.7 4.6 3.0 3.5 2.3 2.7
0
3.0 -5
14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 15-Q4 16-Q1 16-Q2 16-Q3 16-Q4 17-Q1 17-Q2 17-Q3 17-Q4 18-Q1 18-Q2 18-Q3 18-Q4 19-Q1 19-Q2 19-Q3 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 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Source: Analize Imobiliare and Imobiliare.ro
6 PRICE TRENDS ACROSS MAIN CITIES apartments for sale/rent
7 The status in the major cities - apartments for sale
From the cities having more than 200,000 inhabitants in cases. Bucharest alone is an exception in this case, as it Romania, the same seven regional centres had, in Q3 2019, ranks first in a classification of price growths - the sellers’ average asking prices of more than EUR 1,000 per useful claims increased by 5.5% last quarter, given that, in Q2 square meter for the apartments available for sale. 2019, they registered a 0.8% decrease. Next are Cluj-Napoca still ranks first (with an average of EUR 1,610 Cluj-Napoca, with a 2.7% quarterly advance, then per useful square metre), followed by Bucharest (with EUR Constanța (+2.2%) and, respectively, Oradea (+1.7%). 1,380 per useful square metre), Timișoara (with EUR 1,230 per square metre), Constanța (EUR 1,160 per square Compared to the similar period of the past year, prices also metre), Brașov (EUR 1,130 per square meter), Craiova (EUR had an upward development in most major cities subject 1,090 per square metre) and Iași (EUR 1,010 per square to our analysis; this time, only Craiova is an exception, metre). where the prices of apartments are now lower by 1.4%. As a result of last quarter’s evolution, the highest annual Worth mentioning is the fact that, out of the other major growth margin, respectively 7.2%, can now be seen in cities included in the classification, Oradea is getting very Bucharest, followed by Galați (+6.8%), Brașov (+6.7%), Brăila close to the EUR 1,000 per square meter threshold, as the (+6.4%) and Cluj-Napoca (+6.2%). With a 68.7% growth in sellers’ claims reached EUR 990 per square metre last year. the past five years, Cluj-Napoca is the city which recovered In Ploiești, on the other hand, an apartments costs, on the most from the drop caused by the recession, with the average, EUR 910 per square metre, in Galați EUR 900 per Capital still at a great distance, having a growth of only square metre, and in Brăila EUR 790 per square metre. As 38.3% (compared to the 31% registered in the previous far as the quarterly evolution of prices in these major cities, three months). worth mentioning is the fact that most of them saw an ascending trend, with a growth of less than 3%, in most
Price trends across main cities - apartments for sale
68.7% 38.3% 44.8% 38.1% 41.3% 50.7% 29.3% 60.9% 28.5% 46.4% 44.5%
6.2% 7.2% 3.8% 2.6% 6.7% 1.4% 2.8% 4% 5% 6.8% 6.4%
2.7% 5.5% 1.1% 2.2% +1.3% 0.2% 1.1% 1.7% 0.3% 1.1% 0.3%
1,610 1,380 1,230 1,160 1,130 1,090 1,010 990 910 900 790
Cluj-Napoca București Timișoara Constanța Brașov Craiova Iași Oradea Ploiești Galați Brăila
Price change over last 5 years % Source: Analize Imobiliare and Imobiliare.ro Price change over last 12 months % Price change over last 3 months % Median price per sq.m. (€)
8 The status in county seats - apartments for sale
Unlike the previous three quarters, Bucharest ranks A decrease of less than 1% was registered in three county among the county seats which registered the highest seats, namely in Slobozia (0.9%, down to EUR 690 per price increase in Q3 2019. The first place in this square metre), in Alba Iulia (-0.5%, down to EUR 890 per classification is held by Miercurea-Ciuc, with a 6.3% square metre) and, respectively, in Brăila (-0.3%, down to increase, up to an average of EUR 950 per useful square EUR 790 per square metres). metre. With an added 5.5%, up to EUR 1,380 per useful square metre, the Capital ranks second nationwide, being In spite of the variations registered over the past three followed by Sibiu (+4.1%, up to EUR 990 per square metre), months, the national classification of county seats having Slatina (+3.7%, up to EUR 1,000 per square metre) and, the most expensive apartments remained unchanged. respectively, Târgoviște (+3.5%), up to EUR 670 per square Cluj-Napoca still ranks first, with an average price of EUR metre). An interesting presence in this classification is that 1,610 per useful square metre, the following positions are of Olt county seat, which has come to join the regional held by Bucharest (with EUR 1,380 per useful square centres, having asking prices of at least EUR 1,000 per metre), Timișoara (with EUR 1,230 per square metre), useful square metres for apartments - although this city Constanța (EUR 1,160 per square metre), and respectively has a population of under 100,000 inhabitants. Brașov (with EUR 1,130 per square metre), the latter having managed to outperform Craiova. At the opposite pole, the In spite of the ascending trend noted at national level, a cheapest apartments can still be found in Reșița (EUR 500 few price drops were also registered in several county per square metre), then in Giurgiu (EUR 540 per square seats. As a matter of fact, the most significant decline metre), Alexandria (EUR 590 per square metre), Târgoviște occurred in Alexandria, where the apartments available for (EUR 670 per square metre) and respectively Zalău (EUR sale became cheaper by 2.7% . In Satu Mare, on the other 690 per square metre). hand, this type of properties became cheaper by 1%, reaching an average of EUR 690 per useful square metre.
Maximum price per sq. m. Median price & price change over last 3 months +2.7% +5.5% +1.1% +2.2% +1.3%
1,610 € 1,380 € 1,230 € 1,160 € 1,130 € Cluj-Napoca București Timișoara Constanța Brașov Smallest price per sq. m. Median price & price change over last 3 months 0% +1.1% 2.7% +3.5% +1.1%
500 € 540 € 590 € 670 € 690€ Reșița Giurgiu Alexandria Târgoviște Zalău
Maximum price increase per sq. m Median price & price change over last 3 months +6.3% +5.5% +4.1% +3.7% +3.5%
950 € 1,380 € 990 € 1,000 € 670 € Miercurea-Ciuc București Sibiu Slatina Târgoviște
Lowest price increase per sq. m Median price & price change over last 3 months 2.7% 1% 0.9% 0.5% 0.3%
590€ 690 € 690 € 890 € 790 € Alexandria Satu Mare Slobozia Alba Iulia Brăila
Sursa: Analize Imobiliare și Imobiliare.ro
9 Rental prices The average rental price requested for the rental of a 1st rate comfort 2-room apartment built between 1980 and 2000
Reșița 180 In the third quarter of 2019 which, includes, of course,
Târgoviște 200 the month of September, the rental properties market was more dynamic than usual: the owner’s average Târgu-Jiu 200 asking prices registered an increase in all regional Baia Mare 200 centres, as well as in other county seats. In Bucharest, Giurgiu 200 the average asking rent for a two-room apartment now Drobeta Turnu-Severin 200 stands at EUR 410 per month, up from EUR 400 per
Piatra-Neamț 200 month in the second quarter of the year. The same type
Bistrița 210 of property (type 1 comfort, from the period 1980-2000, having a useful area of 50-60 square metres) can be Râmnicu Vâlcea 210 rented in Cluj-Napoca at EUR 420 per month - up from Slatina 210 the same level of EUR 400 per month. Deva 220
Satu Mare 220 The rent asked in the two-room apartment segment
Suceava 230 saw an equalization in the other regional centres included in the classification, and it has now reached Bacău 240 EUR 350 per month in Timișoara, Brașov and Iași. By Oradea 240 comparison, last quarter, a housing unit could be rented, Buzău 240 in the same cities, at EUR 340, 325, and respectively 300 Botoșani 250 per month. What is interesting is the fact that two other Arad 250 county seats, Târgu Mureș and Tulcea, have a very close
Pitești 250 monthly rent: EUR 320 per month. In Constanța, on the other hand, a two-room apartment can be rented at Galați 250 EUR 300 per month, and the seaside city is closely Focșani 250 followed by Sibiu, at EUR 290 per month. Craiova 250
Alba Iulia 250 The cities with the cheapest apartments for rent Brăila 250 generally registered a growth in the average asking rent
Sibiu 290 for two rooms, as well. Reșița is the exception to the rule, where the owners ask EUR 180 per month, just as in the Ploiești 300 previous quarter. In Râmnicu Vâlcea, however, the Constanța 300 asking rent reached EUR 210 per month (EUR 185 per Tulcea 320 month), so this city is preceded, in a classification of Târgu Mureș 320 lowest rents, by a series of county seats having an Brașov 350 average listing value of EUR 200 per month: Târgoviște,
Timișoara 350 Târgu Jiu, Baia Mare, Giurgiu, Drobeta Turnu Severin and, respectively Piatra Neamț. Iași 350
București 410
Cluj-Napoca 420
Source: Analize Imobiliare and Imobiliare.ro
400
10 PRICE TRENDS ACROSS NEIGHBORHOODS
Timișoara Brașov
București Iași
ClujNapoca Constanța Bucharest - apartments
1,380 € +5.5% +7.2% +38.3% Average price/sqm Price evolution Price evolution Price evolution in the last 3 months in the last 12 months in the last 5 years
12 13 Neighbourhoods and areas in Bucharest
In Bucharest, the average price asked by apartment sellers slight decrease also occurred in the Giurgiului area (-0.2%) registered a significant 5.5% growth in the third quarter of and, respectively, in Pantelimon (-0.1%, down to EUR 1,110 the year, reaching a value of EUR 1,380 per useful square per square metre). The lowest price increase, on the other metre (as compared to EUR 1,310 per square metre). Worth hand, was registered in Crângași (+0.1%, up to EUR 1,230 mentioning is the fact that, in terms of neighbourhoods, per square metre) and, respectively, in Giulești (+0.4%). As important price variations were registered in the Capital, a result of the price variations registered in the last some of which were significantly higher than the average quarter, the classification of Bucharest’s neighbourhoods valid at city level. Unlike the previous quarter, when the with the most expensive apartments saw important central-Northern area was most affected by drops, this is changes. The Kiseleff-Aviatorilor area ranks first now, with the area where the highest price growth was registered in an average price of EUR 2,640 per square metre, which the July-September period. has managed to surpass Herăstrău-Nordului, where the seller’s claims went up to EUR 2,600 per useful square Thus, the highest growth in the sellers’ asking prices, metres. Ranking next are Dorobanți-Floreasca (with EUR amounting to 16.2%, was registered in the Kiseleff- 2,190 per useful square metre, from EUR 2,110 per square Aviatorilor area, the next place in the price growth metre), Aviației (with EUR 1,940 per useful square metre, classification was held by the Griviței-Gara de Nord area, from EUR 1,860 per square metre), and, respectively, with an added 10.9% over three months (up to an average Dacia-Eminescu (at EUR 1,820 per square metre) - this last of EUR 1,340 per square metre). Significant growth was area having managed to surpass Unirii (at EUR 1,780 per also registered in Pipera (+8.9%, up to EUR 1,580 per square square metre). metre), Herăstrău - Nordului (+6.8%) and, respectively, Victoriei- Romană- Universitate (+6.2%, up to EUR 1,770 per In a classification of Bucharest areas with the most square metre). inexpensive apartments, no changes have been recorded: the top position is still held by Ghencea (with an average of Last quarter, the Capital registered price drops, as well - EUR 910 per square metre), and next in ranks are Rahova the most significant decline was in the Ștefan cel Mare (at EUR 970 per square metre), then Giurgiului (EUR 1,030 area, where apartment owners reduced their claims by per square metre), Giulești (EUR 1,050 per square metre) 4.1%, down to an average of EUR 1,440 per square metre. A and Militari (at EUR 1,080 per square metre).
Neighborhoods with the largest price per sq. m. Median price & price change over last 3 months
+16.2% +6.8% +3.7% +4.2% +4.7%
2,640€ 2,600€ 2,190€ 1,940€ 1,820€ Kiseleff- Herăstrău- Dorobanți- Aviației Dacia-Eminescu Aviatorilor Nordului Floresca
Source: Analize Imobiliare and Imobiliare.ro
13 Neighbourhoods with the Neighbourhoods with the largest price increase per sq. m. smallest price increase per sq. m. Median price & price change over last 3 months Median price & price change over last 3 months
Kiseleff-Aviatorilor 2,640€ +16.2% Ștefan Cel Mare 1,440€ 4.1%
Griviței-Gara Giurgiului 1,030€ 0.2% 1,340€ +10.9% de Nord Pantelimon 1,110€ 0.1% Pipera 1,580€ +8.9% Crângași 1,230€ +0.1% Herăstrău-Nordului 2,600€ +6.8% Giulești 1,050€ +0.4% Victoriei-Romană- 1,770€ +6.2% Universitate
Neighbourhoods with the smallest price per sq. m. Median price & price change over last 3 months
Ghencea 910€ +2.1%
Rahova 970€ +1.8%
Giurgiului 1,030€ 0.2%
Giulești 1,050€ +0.4%
Drumul Taberei 1,080€ +0.6% Source: Analize Imobiliare and Imobiliare.ro
14 Cluj-Napoca - apartments
1,610 € +2.7% +6.2% +68.7% Average price/sqm Price evolution Price evolution Price evolution in the last 3 months in the last 12 months in the last 5 years
15 13 Neighbourhoods and areas of Cluj-Napoca
After a 2.7% increase compared to the three previous rank first, with an average price of EUR 1,940 per useful months, the claims of apartment sellers from the capital square metre for an apartment (up from EUR 1,840 per of Transylvania stood, in the second quarter of 2019, at an square metre). Next in rank are Plopilor (where the sellers’ average of EUR 1,610 per useful square metre (from EUR expectations reach EUR 1,860 per useful square metre), 1,570 per square metre). As far as its areas are concerned, Gheorgheni-Andrei Mureșanu (EUR 1,770 per useful unlike the Capital, the city located on the river Someș only square metre) and Mărăști-Între Lacuri-Aurel Vlaicu (EUR saw positive variations. However, compared to Bucharest, 1,640 per square metre). At the opposite pole, the the growth margins were significantly lower: the highest cheapest apartments can still be found in the bordering growth, of 5.5%, occurred in the central and ultra-central localities Florești and Baciu (EUR 1,050 per square metre), area, at a level equal to that of the Someșeni area. A 4.7% followed, at some distance, by Someșeni (at EUR 1,270 per price increase was also registered in the Gruia-Dâmbul square metre). Rotund-Gară-Bulgaria area. In all the neighbourhoods of Cluj, the current level of In the other neighbourhoods of Cluj, the price growth apartment prices is higher than the one recorded in the registered last quarter stood below the 4% threshold. similar period of the previous year. However, the most Thus, the lowest variation occurred in Iris (+1,1%, up to EUR significant growth was seen in Iris (+13.6%), in the central 1,500 per square metre), Florești (+1.1%, up to EUR 890 per and ultra- central area (+13.2%), in Baciu (+9.8%), in Plopilor square metre) and Grigorescu (1.6%, up to EUR 1,600 per (+9.4%) and, respectively, in Gruia -Dâmbul Rotund-Gară- square metre). Bulgaria (also an additional 9.4%). On the other hand, the lowest annual growth margins can be seen in several Just as in the Capital, the classification of the areas with newer areas of the city: Zorilor (+0.8%), Florești (+2.8%) and, the most expensive apartments in Cluj-Napoca remained respectively, Someșeni (+3.4%). unchanged: the central and ultra-central area continue to
“EUR 1,050 per square metre is the price difference between the most expensive area in Cluj - Central/Ultra-central (EUR 1,940) and the cheapest area - Florești (EUR 890).”
Neighborhoods with the largest price per sq. m. Median price & price change over last 3 months
+5.5% +2.7% +3.2% +2.7% +1.6%
1,940€ 1,860€ 1,770€ 1,640€ 1,600€ Central Plopilor Gheorgheni Mărăști Grigorescu - Ultracentral - Andrei Mureșanu - Între Lacuri - Aurel Vlaicu
Source: Analize Imobiliare and Imobiliare.ro
16 Apartments for sale
Average Price evolution Price evolution price/sqm in the last 3 months % in the last year %
Central - Ultracentral 1,940 5.5% 13.2%
Plopilor 1,860 2.7% 9.4%
Gheorgheni - Andrei Mureșanu 1,770 3.2% 8.5%
Mărăști - Între Lacuri - Aurel 1,640 2.7% 5.5% Vlaicu
Grigorescu 1,600 1.6% 5.9%
Zorilor 1,570 3.1% 0.8%
Gruia - Dâmbul Rotund - Gară - 1,530 4.7% 9.4% Bulgaria
Bună Ziua - Europa - Calea Turzii 1,520 2.6% 5.3%
Iris 1,500 1.1% 13.6%
Manăștur - Borhanci - Câmpului 1,500 2.6% 4.7%
Someșeni 1,270 5.5% 3.4%
Baciu 1,050 1.8% 9.8%
Florești 890 1.1% 2.8%
Source: Analize Imobiliare and Imobiliare.ro
17 Timișoara - apartments
1,230 € +1.1% +3.8% +44.8% Average price/sqm Price evolution Price evolution Price evolution in the last 3 months in the last 12 months in the last 5 years
18 13 Neighbourhoods and areas in Timișoara
As a result of a 1.1% growth, the average asking price for an most expensive apartments, Ultracentral-Medicină-Piața apartment in the Banat capital reached, in the third Unirii still ranks first, with an average price of EUR 1,540 per quarter of 2019, an average of EUR 1,230 per useful square useful square metre. Next is the area Complex Studențesc- metre (up from EUR 1,210 per useful square metre). Unlike Dacia-Elisabetin- Olimpia- Stadion (at EUR 1,310 per useful Cluj-Napoca, the Timișoara market did not only record any square metre), followed by Central- Bălcescu-Take positive variations. Moreover, the growth margins Ionescu-Piața Maria (EUR 1,300 per useful square metre), registered here were significantly lower - compared to the Torontalului (EUR 1,280 per square metre) and, city located on the river Someș, and also compared to the respectively, Circumvalațiunii (EUR 1,270 per square previous quarter. metre). At the opposite pole, the least expensive apartments can be found in Șagului -Dâmbovița- Iosefin- The highest growth, namely +3.4%, was registered in Steaua, where the seller’s claims reach EUR 1,180 per Circumvalațiunii, and next in rank were the areas square metre, on average. In Timișoara we can still see the Ultracentral-Medicină-Piața Unirii (+2.9%), Lipovei - same narrow variation interval in terms of asking prices, as Aradului (+2.6%), Central - Bălcescu -Take Ionescu - Piața most areas are rated between EUR 1,200 and, respectively, Maria (+2.4%), as well as Complex Studențesc- Dacia - 1,300 per useful square metre. Elisabetin - Olimpia - Stadion (+2%). On the other hand, the apartments from Șagului-Dâmbovița-Iosefin-Steaua saw In Timișoara, the claims of apartment sellers continue to a price increase of 1.1% in the analysed period, and the ones be higher now in all neighbourhoods, compared to the from Braytim and Girocului - Soarelui -Buziașului, 0.5% similar period of last year. The highest annual growth, of each, The only neighbourhoods of Timișoara where prices 5.7%, can be seen in Ultracentral - Medicină - Piața Unirii, decreased over the past quarter are Torontalului and this area being followed by Lipovei - Aradului (+4.7%), Bucovina - Simion Bărnuțiu - Gării - Dorobanților - Mircea Complex Studențesc - Dacia - Elisabetin - Olimpia - cel Bătrân. However, just as in the previous three months, Stadion (+4.4%), Circumvalațiunii (+4.3%), Girocului - the decrease is very small, of less than 1%: we are dealing Soarelui - Buziașului (+4.3%) and Bucovina - Simion with a 0.2% reduction in the first case and, respectively, a Bărnuțiu - Gării - Dorobanților - Mircea cel Bătrân (also 0.4% rebound in the second case. +4.3%). On the other hand, the lowest increase over a 12-month period can be noted in Torontalului (+ 2%) and, In a classification of Timișoara’s neighbourhoods with the respectively, Braytim (+2.2%).
“EUR 360 per square metre is the price difference between the most expensive area in Timișoara (Ultracentral-Medicină - P-ța Unirii/EUR 1,540) and the cheapest area (Șagului - Dâmbovița - Iosefin - Steaua/ EUR 1,180).”
Neighborhoods with the largest price per sq. m. Median price & price change over last 3 months
+2.9% +2% +2.4% 0.2% +3.4%
1,540€ 1,310€ 1,300€ 1,280€ 1,270€ Ultracentral Complex Central Torontalului Circumvalațiunii Medicină Studențesc Bălcescu P-ța Unirii Dacia Take Ionescu Elisabetin P-ța Maria Olimpia-Stadion Source: Analize Imobiliare and Imobiliare.ro
19 Apartments for sale
Average Price evolution Price evolution price/sqm(€) in the last 3 months % in the last year %
Ultracentral - Medicină - P-ța Unirii 1,540 2.9% 5.7%
Complex Studentesc - Dacia - 1,310 2% 4.4% Elisabetin - Olimpia-Stadion Central - Bălcescu - Take Ionescu - 1,300 2.4% 3.7% P-ța Maria
Torontalului 1,280 0.2% 2%
Circumvalațiunii 1,270 3.4% 4.3%
Lipovei - Aradului 1,250 2.6% 4.7%
Girocului - Soarelui – Buziașului 1,210 0.5% 4.3%
Braytim 1,210 0.5% 2.2%
Bucovina - Simion Bărnuțiu - Gării 1,200 0.4% 4.3% – Dorobanților - Mircea cel Bătran Șagului – Dâmbovița - Iosefin - 1,180 1.1% 3.5% Steaua
Source: Analize Imobiliare and Imobiliare.ro
20 Neighbourhoods and areas in Brașov
After a growth of 1.3% registered in the third quarter of metre), whereas, in Centrul Istoric -Centrul Civic- 2019, the apartments from Brașov can currently be Ultracentral - Dealul Cetății, the sellers’ claims were purchased for EUR 1,130 per square metre on average. As is reduced by 1.7%. the case in Bucharest or Timișoara, price growth was registered in most neighbourhoods of the city located at Compared to the similar period of last year, the the foot of mount Tâmpa - however, they were, as in the apartments available for sale are now more expensive in previous three months, quite moderate, not exceeding all the areas of Brașov. Unlike the previous quarter, growth the 4% threshold. The highest increase, namely 3.1%, was margins are, in most cases, single-digit, the highest recorded for the apartments from Griviței - which reached annual difference, of 11%, being noticed in the an average price of EUR 1,160 per metre (from EUR 1,120 Craiter-Triaj-Hărmanului area. On the other hand, the per square metre in the previous quarter). On the other lowest annual growth margin, of 3.3%, can be seen in hand, a significant growth, from 8.9%, was seen in the Noua-Dârste. Schei- Stupini area (from EUR 1,130 to EUR 1,030 per square
Average Price evolution Price evolution price/sqm(€) in the last 3 months % in the last year %
Drumul Poienii 1,790
Centrul Istoric - Centrul Civic - 1,280 1.7% 7.9% Ultracentral - Dealul Cetății
Central – Brașovul Vechi - 1,190 1.1% 7.3% Blumana - Aurel Vlaicu
Avantgarden - Bartolomeu 1,170 1.5% 8.7%
Griviței 1,160 3.1% 9.1%
Astra - Racădău - Calea Bucureș- 1,120 1.8% 6.0% ti - Gării – Vlahuță
Tractorul - 13 Decembrie 1,110 0.6% 6.5%
Craiter - Triaj - Harmanului 1,040 2% 11%
Schei - Stupini 1,030 8.9% 0.0%
Noua - Dârste 1,000 1.9% 3.3%
Source: Analize Imobiliare and Imobiliare.ro
21 Neighbourhoods and areas in Iași
After a growth of 1.1%, the average asking price for an square metre. Compared to the similar period of last year, apartment in the capital of Moldova reached a value of the asking prices for apartments in Iași are currently EUR 1,010 per square metre last quarter - thus remaining higher in most cases, the most significant annual above the threshold of EUR 1,000 per square metre. With differences being noted in the areas Nicolina - Cug - one exception, the neighbourhoods of Iași registered a Frumoasa-Baza 3 (+7.9%), Păcurari- Popas Păcurari-Canta positive evolution in the price of apartments over the (+5.8%) and, respectively, Podul de Fier-Moara de Vânt analysed period - however, the increase was also below 4% (+4%). In the Copou area, the annual growth (of 1.5%) is, here, as well. This maximum growth margin was reached interestingly, smaller than the quarterly growth (which in the Păcurari-Popas Păcurari-Canta area, where the was of 2%). sellers' expectations reached an average of EUR 950 per
Average Price evolution Price evolution price/sqm(€) in the last 3 months % in the last year %
Centru Civic - Gara - Central - 1,310 1.4% 0.8% Ultracentral
Copou 1,220 2% 1.5%
Podul de Fier - Moara de Vânt 1,200 0.7% 4%
Tătărași - Tudor Vladimirescu 1,050 1.5% 1.6%
Alexandru cel Bun - Dacia 1,000 2.6% 3.8%
Podu Roș 980 0.2% 1.3%
Nicolina - Cug - Frumoasa - Baza 3 970 1.5% 7.9%
Bucium - Galata - Mircea cel 960 1.1% 1.8% Bătrân
Păcurari - Popas Păcurari - Canta 950 4% 5.8%
Source: Analize Imobiliare and Imobiliare.ro
22 Neighbourhoods and areas in Constanța
Last quarter, the price of apartments in Constanța Compared to the similar period of the previous year, a solid registered a 2.2% growth, up to an average of EUR 1,160 per growth can be noted in the neighbourhoods of Constanța useful square metre. Unlike the previous quarter, when - however, interestingly enough, these variations are not the sellers’ claims had come to a standstill in most very high, either; instead they stand, in most cases, under analysed areas, the only standstill registered in the period the 4% threshold. The only exceptions to the rule in this July-September was in the area CET-Anda. Price growth regard are the areas I.C. Brătianu-Brătianu-Energia (with was registered in the other areas of the seaside city, an added 4.5%, up to EUR 1,120 per useful square metre) however moderate, remaining under the 3% threshold; and Central- Ultracentral - Peninsula (+4.1%, up to EUR the most significant advance, of 2.4%, was in the Casa de 1,190 per useful square metre). In the Faleză Cultură-Tomis Plus area, where the sellers’ expectations Nord-Trocadero-City Park Mall-Capitol-Delfinariu area, reached EUR 1,150 per useful square metre. which remains the best-rated in the city, prices only increased by 2.4% over the course of one year, reaching an average of EUR 1,340 per square metre.
Average Price evolution Price evolution price/sqm(€) in the last 3 months % in the last year %
Faleza Nord - Trocadero - City Park 1,340 1.9% 2.4% Mall - Capitol - Delfinariu Tomis III - Dacia - Tomis II - Brotă- 1,200 1.3% 2.2% cei - Tomis I
Central - Ultracentral - Peninsula 1,190 1.5% 4.1%
Tomis Nord - Inel II - Inel I - Primo - 1,170 2.1% 2.1% Far
Casa de Cultură - Tomis Plus 1,150 2.4% 3%
I. C. Bratianu - Brătianu - Energia 1,120 1% 4.5%
Gara - ICIL - Abator 1,110 0.7% 3.4%
Km 4-5 - Km 5 1,050 0.7% 2.2%
CET - Anda 1,000 0% 2.6%
Poarta 6 1,000 1.2% 1.9%
Source: Analize Imobiliare and Imobiliare.ro
23 DEMAND FOR APARTMENTS AND HOUSES Demand* for residential properties for sale
In the third quarter of the current year, the interest for the two-digit: the highest difference can be noted in procurement of residential properties in the country’s Cluj-Napoca (+32%), the city located on the Someș river major registered quite an important growth margin, being followed by Timișoara (+19%), Constanța (+18%), Iași compared to the three previous months. Thus, (+16%), Brașov (+14%) and, respectively, by Bucharest (+12%). approximately 175,000 potential buyers searched for In terms of the number of searches for apartments and apartments and houses put up for sale on Imobiliare.ro in houses, registered on Imobiliare.ro, Bucharest naturally the country’s six biggest cities - a figure which is ranks first, at a considerable distance from the other equivalent to a 5.4% growth compared to the second regional centres - 90,100 searches were conducted here in quarter of 2019, when 166,000 searches were registered on the last quarter, up from 88,500 in the previous one. the same markets. Timișoara is second in rank, at a tie with Cluj-Napoca this time, as they both had 18,900 searches in the July-September period. Brașov move to the third place, By comparison with the similar period of 2018, the current surpassing Constanța (having 16,900 searches compared demand volume in these regional centres is, on the whole, to 16,800), and Iași was last, with 13,600 searches. 16% higher, the growth trend being noticed in all analysed major regional centres. Worth mentioning is the fact that, in all cases, the growth registered by this indicator was
The demand for residential properties for sale houses and apartments - new and existing
90,100 18,900 18,900 16,900 16,800 13,600
București Timișoara Cluj-Napoca Brașov Constanța Iași
+12% +19% +32% +14% +18% +16% Change over last 12 months %
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
24 Apartments and houses for sale New vs. old
The preferences of potential home buyers remained more popular than the old ones in three regional centres structured pretty much in the same way over the past of the country, namely Cluj-Napoca (where they hold a three months, in spite of certain specific changes, most 70% market share), Iași (65%), and Bucharest (60%, just like customers still having a propensity for new properties. in the previous three months). On the other hand, in the Thus, in the six analysed major regional centres, other three major regional centres subject to our analysis, newly-built apartments and houses represent 56% in total new properties have a significant share, but still in searches (slightly lower than the 57% of the previous minority within total searches: 48% in Timișoara, 38% in quarter). Housing units completed after the year 2000 are Brașov and, respectively 37% in Constanța.
Demand for new vs existing properties in 2019-Q3
38% 37% 48% 60% 70% 65%
52% 62% 63% 40% 30% 35% The demand for new properties The demand for existing properties
Cluj-Napoca Iași București Timișoara Brașov Constanța
Source: Analize Imobiliare and Imobiliare.ro
25 DEMAND FOR RESIDENTIAL PROPERTIES FOR RENT
In the major cities, the demand for apartments and felt in four of the six major regional centres, namely in houses for rent continues to be significantly lower than Cluj-Napoca (-7%), Brașov (-7%), Constanța (-7%) and, the demand for residential properties for sale - however, it respectively, Timișoara (-6%). On the other hand, a slight exceeds half of the latter’s volume. Thus, in the past three increase in demand for the properties for rent was seen in months, approximately 96,300 potential renters tried to Iași (+4%) and Bucharest (+1%). Compared to the similar rent a home using Imobiliare.ro, up from the 89,000 period of the year 2015, the interest in renting was 32% registered in the three previous months. Bucharest drew higher last quarter in the large regional centres, and an more than half of these searches, namely 52,300. Second ascending trend can be noted in each of them. The most in rank was Cluj-Napoca (with 12,000 searches), the city on significant growth, of more than 70%, was seen in Iași, the the river Someș being followed by Timișoara (9,800), capital of Moldova, at a considerable distance from Constanța (8,200 searches), Iași (7,700) and Brașov (6,300). Cluj-Napoca and Timișoara, where the number of searches for this market segment increased by 44% for each of them. The Analize Imobiliare data also reveals that Compared to the similar period of last year, the current the interest in renting is 30% higher in Brașov, 29% higher level of demand in the rent segment in these six major in Constanța, and 24% higher in Bucharest. cities is, on the whole, 2% lower. The decreasing trend was
The demand for apartments and houses for rent
+24% +44% +44% +29% +70% +30% Change over last 4 years
+1% 7% 6% 7% +4% 7% Change over last year
52,300 12,000 9,800 8,200 7,700 6,300
București Cluj-Napoca Timișoara Constanța Iași Brașov
Source: Analize Imobiliare and Imobiliare.ro
26 NUMBER OF PROPERTIES FOR SALE IN THE MAJOR CITIES
Compared to the similar period of last year, the total market, on the whole, their number is 4.9% lower supply of residential properties available for sale in the six compared to the third quarter of 2018. In this case, the major regional centres of the country (apartments and downward trend may be noted in four of the six major houses built before the year 2000) was 1.8% higher last cities, namely in Constanța (-17.2%), Brașov (-12.8%), quarter. An ascending evolution under this chapter can be Bucharest (-8.4%) and respectively Timișoara (-4.7%). On noted in four of the six cities subject to analysis, whereas a the other hand, an increase of this indicator was registered drop was seen in the other two. The most important in Iași (+13,1%), as well as in Cluj-Napoca (+8.5%). annual growth in supply, namely 10.5%, can be seen in Iași, where 1,410 offers available for sale existed last quarter. In terms of offers which were new on the market, the Capital naturally ranks first in the classification of the large A more moderate growth from this point of view also regional centres, with a total of 3,870 ads, a figure which is occurred in Cluj-Napoca (+6.3%, up to 2,640 offers) and equivalent to more than 45% from the total of 8,480. Timișoara (+2.1%, up to 2,280 ads), whereas in Bucharest, Cluj-Napoca and Timișoara, the next two markets in terms which is also the largest real estate market in the country, of size at national level, are on the next two positions in the the advance was of only 0.5% (up to 7,560 offers). On the classification, with 1,460, respectively 1,090 new offers. In other hand, a decrease in the number of properties all the other analysed offers, the number of ads available for sale was seen in Constanța (-4,6%, down to newly-placed on the market last quarter was of less than 1,290 offers) and, respectively, in Brașov (-1.6%, down to 1,000; in Iași there were 780 such properties, in Constanța 1,160 ads). Regarding the properties newly placed on the 650, and in Brașov 630.
Number of listings - for sale in Q3-2019 Apartments and houses built before the year 2000
7,560
New listings All listings for sale 3,870
2,640 2,280 1,460 1,410 1,090 1,290 1,160 780 650 630
București Cluj-Napoca Timișoara Iași Constanța Brașov
8.4% 8.5% 4.7% 13.1% 17.2% 12.8% New listings Change over last 12 months 0.5% 6.3% 2.1% 10.5% 4.6% 1.6% All listings for sale
Source: Analize Imobiliare and Imobiliare.ro
27 RESIDENTIAL PROJECTS AVAILABLE FOR SALE
According to a monitoring conducted by Analize the Capital holds, with a total of 10,200 housing units, the Imobiliare, last quarter there were 536 residential first place in the classification, at a comfortable distance developments with housing units available for sale in the from all the other major cities in the country. If we were to six major regional centres of the country, as well as in the add the 3,600 apartments available for sale in the county county of Ilfov. More than half of these projects, more of Ilfov, it follows that the inhabitants of Bucharest have a specifically 316 from the total, were under construction, new housing stock of almost 14,000 units. By comparison, the remaining 220 being completed. Most of the analysed all the other regional centres in the country had less than developments, each having more than 20 residential 2,000 available housing properties last quarter: Timișoara properties, were, naturally, located in Bucharest - this is a – 1,700, Brașov – 1,600, Cluj – 1,100, Iași – 1,100, and Constanța total of 256 projects, 140 of which are under construction, – 600. and the remaining 116 are completed. Ranking second according to the number of residential projects is the Worth mentioning is the fact that in Bucharest, Ilfov, and county of Ilfov, with a total of 93 such real-estate in the other analysed major cities there were, in the third developments, and next in rank are Brașov (with 53 quarter of the current year, 99 real estate projects in projects), Iași (43); Cluj-Napoca (33), Timișoara (30) and, various stages preceding the commencement of respectively, Constanța (28). In each of these cities, the construction works, as well. Most such projects, namely 38, number of projects under construction exceeds the can be found in Ilfov, and another 33 in the Capital, and in number of already-completed projects. the other regional centres less than 10 residential projects are pending: eight in Timișoara, six in Constanța, five in In terms of the number of housing units put up for sale, Cluj-Napoca and Iași, and four in Brașov.
Residential projects for sale in the 3rd quarter of 2019
APARTMENTS FOR SALE BUCUREȘTI ILFOV CLUJ NAPOCA TIMIȘOARA IAȘI CONSTANȚA BRAȘOV
Projects for sale, of which: 256 93 33 30 43 28 53
• Projects under construction 140 51 20 20 28 15 42
• Completed projects 116 42 13 10 15 13 11
Apartments for sale 10,200 3,600 1,100 1,700 1,100 600 1,600
Projects not started 33 38 5 8 5 6 4 (in various stages of the construction permit/ town-planning certificate)
Source: Analize Imobiliare, Monitoring of residential projects, projects having at least 20 apartments
28 NUMBER OF PROPERTIES FOR RENT IN THE MAJOR CITIES
In the third quarter of 2019, the number of apartments of last year, the rental offer stood at the level of the six and houses available for sale in the major cities of the major regional centres, being 8.1% higher, the generally country (properties completed before the year 2,000) ascending trend being felt in all analysed cities. What is stood at 23,370 - which marks a significant growth, of interesting is that four of these county seats registered a almost 33% compared to the previous quarter (when two-digit annual growth, respectively 19.5% in Brașov, 17,600 such ads existed on the market). This advance is 12.9% in Constanța, 11.4% in Cluj-Napoca and 11.2% in Iași. In very natural, considering the fact that the beginning of fall Bucharest, on the other hand, the total supply was traditionally comes with an enhancement in the activity supplemented with 5.3% on this market segment, conducted on the rental market in the large university whereas, in Timișoara, a 2.9% advance was registered. centres. Concerning rental listings which were newly introduced to The city with the highest number of housing properties the market during the last quarter, the data held by for rent remains, of course, Bucharest, where those who Analize Imobiliare reveals a slight growth, respectively of were interested could choose from 10,420 such ads last 3.6% compared to the similar period of 2018. In this case, quarter, at a considerable distance, but nearing half of the growth was only registered in five of six regional centres, offers existing in the Capital, is Cluj-Napoca, with 4,870 respectively in Brașov (+16.3%), Iași (+9.2%), Cluj-Napoca ads. In Timișoara, the total number of rental offers was, in (+7.8%), Constanța (+5.1%) and Bucharest (+1.1%). From this the period July-September, of 2,760, the city on the river point of view, Timișoara is the exception to the rule, a 5.1% Bega being followed by Constanța (with 1,990 ads), Iași decline being registered here, over a 12-month period. (1,950) and Brașov (1,380). Compared to the similar period
Properties listed for rent in the major cities in Q3 - 2019 Apartments and houses built before 2000
10,420
7,590 New listings All listings for sale 4,870 3,890 2,760 1,960 1,990 1,950 1,450 1,570 1,380 1,020
București Cluj-Napoca Timișoara Constanța Iasi Brașov
New listings Change over 1.1% 7.8% 5.1% 5.1% 9.2% 16.3% last 12 months 5.3% 11.4% 2.9% 12.9% 11.2% 19.5% All listings for sale
Source: Analize Imobiliare and Imobiliare.ro
29 REAL ESTATE SALES, AT NATIONAL LEVEL
According to data released by the National Agency for an increase in the trading activity conducted on the Cadastre and Real Estate Advertising (Romanian: Agenția real-estate market. Thus, the number of contracts Națională de Cadastru și Publicitate Imobiliară, ANCPI), in concluded nationwide was of 382,996 in the period the third quarter of the current year, 148,857 real estate January-September, which marks an advance of sales were concluded at national level. This level marks, on approximately 11%, compared to the similar period of the the one hand, a growth of approximately 19% compared to year 2018. This ascending evolution is all the more the previous quarter (when 125,474 transactions were important as, in the first half of this year, a decrease of registered) but, on the other hand, a 9.5% increase almost 20% compared to the previous year was registered. compared to the similar period of 2018 (when 135,936 such In the first nine months of the year, the highest number of operations were registered). Just as in the previous transactions was registered in Bucharest (66,447) and Ilfov quarters, the highest number of sale-purchase operations (33,989), and next stood Timiș (22,804), Cluj (21,013), Brașov occurred in the third quarter of 2019, in the area of the (19,898), Iași (12,901) and Constanța (12,164). At the opposite Capital: Bucharest registered 24,484 transactions, and the pole, the smallest number of transactions occurred, in this county of Ilfov 12,814. period, in Olt (979 operations), Sălaj (2,383) and Gorj (2,530).
In relation to the first nine months of 2019, we can also see
“The number of property sales in Q3 2019 grew by approximately 19% compared to the previous three months and, respectively, by 9.5% compared to the previous period of 2018”
Property sales
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
2017 2018 2019 Source: ANCPI, data processed by Analize Imobiliare
30 QUARTERLY EVOLUTION OF TRANSACTIONS IN THE MAIN COUNTIES
Unlike the previous three months, the volume of real Worth mentioning is the fact that, for the following estate transactions concluded in the third quarter of 2019 quarter, expectations are positive in terms of the trading grew by comparison to the similar period of the previous activity. That is because, at least in Bucharest, the last part year in most counties with the most intense activity under of the year brought, in 2018, an increase in the number of this chapter. In Bucharest, a significant growth was seen, transactions. Last year, for instance, 23,215 sale-purchase from 18,894 to 24,484 transactions, in Ilfov the growth was contracts were concluded in the largest city in the from 11,976 to 12,814 operations, in Timiș from 7,264 to country. A slight increase was also registered in this regard 9,237, in Cluj from 6,402 to 7,409, and only in Iasi there was in Cluj, Timișoara, Brașov, Constanța and Sibiu, but not also a slight decrease from 5,414 to 5,394.. In Constanta, the in Ilfov and in Iași, as a decrease was registered in these number of property purchases dropped from 4,489 in the latter cases. third quarter of 2018 to 3,825 in the similar period of 2019.
Total properties sold 30,000
25,000
20,000
15,000
10,000
5,000
0 București Ilfov Timiș Cluj Iași Brașov Constanța Sibiu
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
Source: ANCPI, data processed by Analize Imobiliare
31 Quarterly evolution of transactions by quarters in Bucharest and Ilfov
Unlike the previous quarters, in the period July September Compared to the third quarter of last year, the trading 2019, the greatest number of property transactions activity indicates an ascending trend for all analysed concluded in Bucharest, namely 8,901 from the total of market segments - except, of course, for the land in the 24,484, envisaged individual housing units (up from 8,077 open countryside - so a generally positive evolution such operations in the previous three months). Thus, the compared to the previous year can be expected. By number of land plots in the defined urban area without comparison, throughout the course of 2018, in the constructions, on the other hand, which amounted to country's biggest city, 26,000 land plots in defined urban 8,436 (compared to 8,296 in April-June), dropped to the area, 22,000 land plots with constructions and, second position; they were followed, quite closely, by land respectively, 35,000 individual units were purchased. plots in defined urban area with constructions, which were the object of 7,147 sale agreements (also up, from 5,892 contracts).
Bucharest
12,000
10,000
8,000
6,000
4,000
2,000
0 Land outside city limits Land inside city Land inside city limits Individual units limits without buildings with buildings
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
Source: ANCPI, data processed by Analize Imobiliare
32 Quarterly evolution of transactions by quarters in Bucharest and Ilfov
Just like in the previous three months, more than half of remained at an almost constant level, namely 386 the real estate transactions concluded in the county of (compared to 389 in the previous three months). Ilfov envisaged land in built-up areas without constructions - more specifically, there were 7,730 such The same market share distribution can be noted operations, from a total of 12,814 (up from 6,899). Ranking throughout the year 2018, when 25,000 plots of land were second, although at a substantial distance, are the purchased at the level of Ilfov county, 9,000 plots of land procurements of land in defined urban areas with with constructions, 5,800 individual units and, constructions, which amounted to 2,928 (on the increase respectively, 1,600 plots of land in the open countryside. from the 2,412 registered in the second quarter). The This split of the trading activity indicates the maintaining operations envisaging individual units also registered of the interest in the development of new constructions growth last quarter, from 1,393 to 1,770 contracts around the Capital, and, on the other hand, the users are concluded - thus ranking third in the classification of also interested in the purchase of houses with a yard transactions by market segments. Last, but not least, the (represented by the plots of land with constructions). purchases of land located in the open countryside
Ilfov county
12,000
10,000
8,000
6,000
4,000
2,000
0 Land outside city limits Land inside city Land inside city limits Individual units limits without buildings with buildings
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
Source: ANCPI, data processed by Analize Imobiliare
33 Evolution in the number of transactions by quarters in Cluj county
In agreement with the evolution at county level, an Ranking second in terms of transactions performed in Cluj increase in the trading activity was registered in all county is the land segment in built-up areas with segments of the Cluj market. Just as in the previous constructions, which attracted 2,388 purchases last quarter, the most numerous were the purchases of land in quarter (up from 1,962). Contracts having as object defined urban areas without constructions: they reached individual units increased from 1,796 to 2,084, and those the level of 2,485 (out of a total of 7,609), on the increase as with land in the open countryside went from 563 to 652. compared to the 2,066 contracts concluded in the Worth mentioning is also the fact that, over the course of previous three months. Here, the significant share of such the year 2018, approximately 31,500 properties were purchases also indicates the maintaining of a high interest traded in Cluj county, of which 10,200 land plots in the for real estate development (most of which would defined urban area, 9,600 land plots with constructions, probably be residential). 9,100 individual units and, respectively, 2,600 land plots in the open countryside.
Cluj county
6,000
5,000
4,000
3,000
2,000
1,000
0 Land outside city limits Land inside city Land inside city limits Individual units limits without buildings with buildings
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
Source: ANCPI, data processed by Analize Imobiliare
34 Evolution in the number of transactions by quarters in Timiş county
Unlike the previous quarter, the transactions having in place. On the other hand, the purchase of land plots in the view land in the incorporated area without constructions defined urban area with constructions and purchases of were, by far, the most numerous in the county of Timiș land plots with individual units totalled 1,731 and, they registered significant growth, of more than 100%, respectively, 1,605 contracts. Over the course of the year from 1,894 operations in the three previous months, to 2018, in the county of Timiș, 34,575 real estate transactions 3,801 (out of the total 9,237 at county level). The segment of were concluded - a figure which marks a 1.4% drop land plots located in the open countryside, which drew compared to 2017. 2,100 purchases (up from 1,983) thus moved to second
Timiș county
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0 Land outside city limits Land inside city Land inside city limits Individual units limits without buildings with buildings
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
Source: ANCPI, data processed by Analize Imobiliare
35 Evolution in the number of transactions by quarters in Braşov county
Just as in Timiș county, transactions with land plots (up from 1,525 in the three previous months). On the other located in the open countryside without constructions hand, after the significant progress registered in the were, in Brașov county as well, the most numerous: last second quarter, transactions with land plots located in the quarter, they recorded an important growth, from 2,066 open countryside registered a significant drop, from 669 purchases to 3,671 - out of the total of 7,584 such to 359 purchases. Over the course of the year 2018, in the operations. Ranking second are the purchases of built-up county of Brașov, 26,995 real estate transactions were land with constructions, which amounted to 2,005 in the concluded - which is equivalent to a 5% decline compared analysed period (up from 1,934). The purchases of land to 2017. plots with individual units saw a slight increase, up to 1,549
Brașov county
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0 Land outside city limits Land inside city Land inside city limits Individual units limits without buildings with buildings
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
Source: ANCPI, data processed by Analize Imobiliare
36 TIME ON MARKET
Considering the average time period needed to sell an A significant drop in the time on market in the apartment, Bucharest can currently be considered the apartments segment was also registered in Iași last most active market nationwide - a fact which is not at all quarter, where this indicator reached 83 days (compared surprising, since this is where the highest demand can to 114 days in the similar period of 2018). In Cluj-Napoca, also be found, due to its demographic density. The the time needed to conclude a sale dropped from 99 days country's biggest city is followed, from this point of view, last year to 71 days this year, whereas, in Timișoara, a by Brașov, Timișoara, Cluj-Napoca, Constanța and, housing unit has come to be traded in 65 days (down from respectively, Iași. 78 days), on average.
What is worth mentioning is the fact that, in relation to The two major cities which, over the past year, saw an the similar period of the previous year, most analysed increase in the trading period for apartments are usually regional centres registered a decrease of the time on the ones had in view as vacation destinations, namely market. Thus, on the Bucharest market, the time needed Brașov and Constanța. In the first case, this indicator to trade an apartment was, in the July-September 2019 increased slightly, from 56 to 59 days over the past 12 period, of 48 days - at a considerable distance from the months; in the second one, the growth was more other cities subject to our analysis. By comparison, in the significant, namely from 59 to 75 days. third quarter of 2018, the Capital needed 56 days to conclude a transaction.
“In relation to the similar period of the previous year, the majority of analysed regional centres registered a decrease of the time on market. Bucharest is the most active market.”
Time on market (apartments)
120
100
80
60
40
20
0 Iași Constanța Cluj-Napoca Timișoara Brașov București
2018-Q3 2019-Q3
Source: Analize Imobiliare and Imobiliare.ro
37 NEGOTIATION MARGIN
Along with the time on market, another element which is regional centres in the classification of the highest important in view of understanding the dynamics of the negotiation margins are Brașov, with 4% (slightly trading activity is the negotiation margin - calculated as a increasing from the similar period of last year), but also difference between the sale price and the last asking Bucharest, where sellers are willing to negotiate price. With only one exception, last quarter, this indicator approximately 3.5% of a home’s initial price (slightly was higher in the six major cities of the country, compared increasing compared to last year). to the similar period of last year. Although counterbalanced by the general trend for an increase in A negotiation margin somewhat lower than 3% was valid, the price of apartments, this fact does, however, represent last quarter, in Iași - although this is one of the lowest an important advantage for potential buyers. figures recorded in the major cities, it does, however, mark a considerable growth from the similar period of last year, What is interesting is that, currently, the highest when the sellers' availability to negotiate stood at a little negotiation margin, of more than 5.5%, can be found in above 1%. Currently, the regional centre having the lowest Cluj-Napoca, which is precisely where apartments have negotiation margin, namely 1%, is Timișoara, a fact which the highest asking price; by comparison, in the similar suggests a much closer correlation between the sellers' period of last year, it stood at approximately 3.4%. Another financial expectations, on the one hand, and those of the city where the seller’s availability to lower the price buyers, on the other hand. exceeds the 5% threshold is Constanța - where, one year ago, this indicator stood at a little above 2%. The next two
“With only one exception, in the six major cities of the country, this indicator was higher, compared to the similar period of 2018.”
Negotiation margin (apartaments)
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0% Cluj-Napoca Constanța Brașov București Iași Timișoara
2018-Q3 2019-Q3 Source: Analize Imobiliare and Imobiliare.ro
38 CONSTRUCTION OF HOUSING PROPERTIES
Regarding the construction of homes, the most recent Worth mentioning is the fact that, a genuine “explosion” data published by the National Institute of Statistics (INS) occurred that year in terms of deliveries made in the last indicate, for the second quarter of 2019, the maintaining of quarter, when 27,751 homes were completed - which is still the general growth trend, which was also noted in the a record for the local market since 2006. Taking into previous quarter. Thus, in the period April - June, a number account the cyclic nature of the construction market, it is, of 14,490 housing units were completed nationwide - of course, expected, that the last two quarters of 2019 will which is equivalent to an advance of approximately 13.7% bring about an increase in the delivery of homes. Mention compared to the similar period of last year (when 12,742 must be made is the fact that, in the first quarter of this housing units were delivered nationwide). The trend was year, the annual advance registered in the delivery of significantly ascending compared to the first quarter of homes amounted to 24%. Although the current data the year, when, according to the official data, 12,714 indicates a moderation of the growth trend felt on this housing units were reported. In this latter case, the market, it is obvious that the appetite for the development advance was of almost 13%. of new homes continues to intensify. Thus, over the course of the first quarter in 2019, 27,204 homes were completed The number of homes completed last quarter is very close nationwide, which is equivalent to an advance of 18% to the one registered in the second quarter of 2008, when (4,189 units, more specifically), compared to the similar 14,410 units were delivered nationwide. period of 2018 - when 23,015 housing units were completed.
“The number of 14,490 homes completed last quarter is very close to the one registered in the second quarter of 2008, when 14,410 units were delivered nationwide.”
Construction of new dwellings
30,000
25,000
Average over the last four quarters 20,000
15,000
10,000
5,000
0
Q4 Q2 Q4 Q2 Q4 Q2 Q4 ------Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 - - Q2 Q4 ------6 7 7 8 8 9 9 - - - - - 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 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 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Source: ANCPI, data processed by Analize Imobiliare
39 CONSTRUCTION OF HOUSING PROPERTIES
The data provided by the National Institute of Statistics Last quarter, as well, the vast majority of completed indicates that, in the second quarter of 2019 as well, most homes, respectively 96.1% from the total, were made from completed homes were located in the urban area - this is, private funds, and only the remaining 3.9% from public more specifically, a share of 62.6% from the total (up from funds - this means 13,929 homes, as compared to only 561. 59.2% in the previous three months), which is equivalent to Compared to the similar period of 2018, we can note a 9,067 units out of the total of 14,490. The housing units slight increase in the share of homes made from public delivered in the rural environment, on the other hand, funds, from a 1.4% market share and a number of 180 units. reached a number of 5,423 units, representing a share of The category of units made from private funds includes, of 37.4%. By comparison with the similar period of 2018, we course, both the homes built by end consumers on their can note an important increase of the share held by the own, and the ones within residential projects made by the homes completed in the urban environment, from 54.8% developers (this last category is assumed to constitute a (6,978 housing units). majority).
Housing completed nationwide
COMPLETED HOMES NUMBER STRUCTURE % Q2 2019 compared Q2 2018 Q2 2019 to Q2 2018 Q2 2018 Q2 2019
TOTAL 12,742 14,490 +1,748 100 100
Urban Area 6,978 9,067 +2,089 54.8 62.6
Rural Area 5,764 5,423 341 45.2 37.4
out of which:
Private Funds 12,562 13,929 +1,367 98.6 96.1
Public Funds 180 561 +381 1.4 3.9
Source: ANCPI, data processed by Analize Imobiliare
40 Housing properties built in Romania by regions
The latest data published by the National Institute of delivered homes suffered some changes as compared to Statistics indicates that, by comparison with the similar the similar period of 2018, the most important being period of the previous year, in the second quarter of 2019, represented by the fact that the Bucharest-Ilfov region in relation with the country's development areas, both moved from the second place of the classification to the increase and decrease in the number of completed first one, having a current share of 24.6% The North-West homes was registered. Thus, in Bucharest-Ilfov, the region now ranks second, with a share of 16.9%, the third quarterly volume of deliveries went up from 2,294 to 3,564 one being held by the Centre region, with 13.6%. The units, in the West it went from 1,012 to 1,402 units, in the North-East (11.5%) and South-East (10%) areas are at a Centre from 1,607 to 1,967 units, and in South-Muntenia considerable distance, which exceeded the Centre in from 1,141 to 1,395 units. Decrease was registered in the terms of deliveries last year. The West and remaining three regions; however, it was rather small: South-Muntenia regions now have shares of less than 10% from 2,564 to 2,447 units in the North-West, from 665 to (9.7% and, respectively, 9.6%), and South-West Oltenia 592 units in South-West Oltenia, and, respectively, from continues to have the lowest market share (4.1%). 1,692 to 1,673 units in the North-East. As a result of the developments registered last quarter, the ranking of the regions according to the number of
“By comparison with the similar period of the previous year, in the first quarter of 2019, increases were registered in the number of homes completed in all the country’s development regions.”
Number of homes built per regions 4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Bucureşti-Ilfov Nord-Vest Centru Nord-Est Sud-Est Sud-Muntenia Vest Sud-Vest Oltenia
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
Source: ANCPI, data processed by Analize Imobiliare
41 ABOUT US
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42 Contact our team of experts
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