RSS
Real estate: Imobiliare.ro: There is desperate need of building houses
In Romania, there is great need of new houses, in the context in which last year’s delivery volume was below that of 2016, house building did not grow at the same rate as demand, says Dorel Nita, the coordinator of the real estate analysis department, according to a Tuesday press release of Imobiliare.ro and the National Association of Authorized Evaluators in Romania (ANEVAR).
Last year’s delivery volume of about 53,000 locative units at national level, was below the level recorded last year and that of 2008-2009, which exceeded 60,000 units, according to Imobiliare.ro.
Bucharest-Ilfov area, where 10,000 houses were commissioned, below initial estimates, is an example in this respect, although the need of new houses is very high.
“Very little is still being built. From my point of view there is desperate need of building houses,” Nita said at the national edition of the Real Estate Professionals’ Club (CPI), the Imobiliare.ro event devoted to market professionals and supported by ANEVAR.
Nita said that by mid last year, consumers started being more reticent, the market being characterised by high volatility because of the First House program and of the interest rate evolution. Price demand and increase might get temperate, according to Nita.
Andrei Radulescu, the economic analysis director at Transylvania Bank, pointed out there is an obvious relation between the evolution of house prices and that of real salaries. It is significant that salary increases have slowed down lately.
“It is clear that the honeymoon is over and it will be followed by an adjustment period,”Radulescu said at the same event.
He pointed out that, according to what can be seen at European level or even in the US, the housing price increase rate in Romania has slowed down.