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Real Estate: Analysis: Record housing under construction in Bucharest, with over 20,000 units, particularly middle market
2018 was the most prolific in the history of the residential market in Bucharest and its surroundings, establishing a new post-Revolution record, with 11,272 completed dwellings, but 2019 could bring a new maximum, with 14,000 units that could be handed over, reveals a report by a real estate consultant.
At present, more than 20,000 homes are currently in different stages of actual construction in Bucharest and neighboring localities, representing an absolute record in the history of the local post-Revolution residential market. Of these, about 14,000 dwellings could be handed over this year, thus establishing a new record, after 11,272 homes were delivered in 2018, according to the National Institute of Statistics - the most prolific year in this respect, up by about 18 percent as compared to 2017, shows the market report "Residential 2019 Market Genome" drawn up by SVN Romania.
Also a first in the modern history of the local residential market, the dwellings for the middle class will hold this year the majority share of the units that will be completed in Bucharest and its surroundings, after decades when the homes targeting the mass market segment dominated the market, SVN Romania data shows.
Thus, 50.5 percent of the new offer to be put on the market this year by developers is placed on the middle market segment. These homes usually have a very good location near major business centers and in areas with a very good general infrastructure and have larger spaces compared to those completed before 1990.
The development of Romania's economy in recent years could also been noticed in the increase in the share of the middle market segment, which has increased more than four times since the comeback of the local residential market.
Housing for the mass market segment will hold this year about 48 percent of the total number of dwellings scheduled for delivery in Bucharest and its surroundings. These dwellings are located in the big districts or in the outskirts of the city and have similar or even smaller spaces as compared to similar dwellings completed before 1990.