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RE/MAX Romania: increase in prices of about 10% for two-room and three –room apartments in 2022
Specialists in real estate estimate that two-room and three-room apartments will stay at the top of Romanians’ preference this year as well, the majority estimating price increase of up to 10% for this sector, according to the study ‘A scan of the real estate market in 2021 and estimates for 2022’ made by RE/MAX Romania.
Thus, 68% of the participants to the study estimate increase of up to 10% of the prices on the sector of two and three –room flats, 15% consider that the evolution of prices will surpass 10% and a percentage of 10% say the prices will stagnate.
Houses will keep the third position in the top of preferred residences by the Romanians, the trend being seen as a normal continuation of the percentage of sales on this sector recorded in 2021.
Thus, over two thirds of the interviewees (62%) estimate increase of up to 10% in prices for this year, 18% think the prices will increase with over 10% and 14% consider they will stagnate. In the context of increased interest for this sector, the specialists expect increases in built-up areas, 48% estimating an evolution of up to 10% of prices.
‘We have to mention that the study was made at the end of last year, and the estimates of the specialists were based on the trend observed at that moment. It seems that the beginning of this year comes with more increase in prices, so that for 2022 we estimate growth of at least 10% or even over this percentage, on the mentioned sector’ stated Razvan Cuc, the chairman of RE/MAX Romania, in a press release.
On the other hand, the specialists in real estate do not include important changes referring to prices for commercial and office spaces, as a result of adapting to the pandemic context and the new working system. 43% of the interviewees consider that the prices of commercial spaces will stagnate, the same trend being mentioned by 47% for office spaces.
Similarly, on the market of rents for apartments and one-room flats there are no massive changes, as the big university centres function again in offline system as well, and the tendency of working remote is going to the hybrid working method.
Thus, the majority of the participants to the survey (52%) consider that 2022 will be characterized by stagnation of the prices for rents or increase up to 10% (23% of the interviewees), trend explained due to the increase of prices in residences in developed cities.
The study says that, before 2020 one-room flats were a more popular investment and at the start of the pandemics attention centered on houses and outside urban land. Over the last year, the specialists said that two-room and three-room apartments were the most wanted options, followed by houses in the urban area.
Thus, 52% of the interviewees stated that most tradings on the sector sale-purchase were last year for two-room apartments, 39% sold mostly three –room apartments, 21% houses in cities, 16% one-room flats, 15% houses in rural environment, and 12% in built-up areas.
Most clients acquired a residence through their own income in 2021, say 61% of the interviewees in the study. 49% of the specialists say that the main source of financing of the majority of clients was real estate credits/mortgage, 13% mentioned mortgage loan, with an advance higher than 15% and only 4% co-guaranteed loan (the first house type).
According to the specialists, over the last five years, the real estate market was on the growing trend, which depended greatly on the development of each area/town. Thus, 60% of the interviewees to the study stated that the real estate market in their town increased significantly due to the development of the infrastructure, 37% say that the real estate domain increased by 5-10% without mentioning other factors, and 3% say that the market dropped due to the lack of demand or new projects.
At the same time, although the real estate market is one in full development, the answers of the participants for the study show the fact that it is necessary to educate the clients, especially on the part of expectations and demands, 44% of the interviewees added there is need for real estate education for the clients, 21% say these are better informed, and 16% mention that the demands of the clients are big, over the possibilities of the market.
The RE/MAX study was taken by 214 interviewees – specialists in the real estate area – which have their activity in eight cities in the country – Arad, Bacau, Brasov, Bucuresti, Cluj, Constanta, Iasi and Oradea. The majority work in the domain as realtors or real estate agency owners.
In Romania, RE/MAX is the biggest network of franchised real estate offices, with the biggest number of realtors, with at present over 60 franches and over 75 members. The extension plan at national level of RE/MAX aims at,until 2023, 110 franchised offices and over 1,000 realtors.