Irina Caraene, Sales Director of Cordia Romania, analysed, together with the other participants in the panel focusing on the residential sector at the Real Estate & Construction Forum 2024, an event organized on March 4th by Business Mark, the evolution of demand and supply in the segment of new apartments in the first two months of this year.
With building permits issued last year for 0.8 million usable square meters compared to 1.7 million usable square meters in 2022, according to official data from the National Institute of Statistics, the new supply of apartments in the next period will be one of the lowest in the history of the residential market in Bucharest and, as demand is still strong, this will put pressure on prices, which have already increased by 10%, y/y in December 2023.
“We are making plans, especially because the number of permits has been quite low in the last three years. Demand is increasing, supply is decreasing. We saw, at one point, a slight appreciation on old apartments. Now, in January-February there has been a very slight appreciation for 2-3 room apartments. It is worth investing in new apartments and it is worth balancing the market”, explained Irina Caraene, sales director at Cordia Romania.
Participants in the residential-focused panel at the Real Estate & Construction Forum were all of the opinion that one of the main causes for the upward price trend predicted for the coming period is the urban planning gridlock, which has the direct effect of reducing supply in the medium term.