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Real estate: Residential market in Transylvania goes through best moments in last 30 years
Cluj Napoca, Sibiu and Oradea, the largest three regional residential markets in Transylvania registered in 2019 new record commissionings with increases between 6% and over 95%, according to calculations of the real estate consulting company SVN Romania. The report shows that the most spectacular evolution was recorded in Oradea, where the level of houses commissioned in 2019 doubled compared to the previous year, to 2,161 housing units.
Real estate transactions in the first 7 months of 2020 grew significantly compared to the same period of 2019, despite the two months of traffic restrictions during the emergency state, the company shows.
“The residential market in Transylvania is going through its best moments in the last three decades, with record deliveries, an increase of the number of transactions and prices which register a positive evolution against the same period of 2019,” according to a market report made by the real estate consulting company SVN Romania.
So, Cluj Napoca, Sibiu and Oradea, the three largest regional markets in Transylvania registered new absolute records for new housing units deliveries, according to SVN Romania estimates, made based on data of the National Statistics Institute (INS).
Cluj Napoca remained the largest regional residential market in Romania, except for Bucharest-Ilfov area. 7,557 housing units were completed in 2019 and the city and the surrounding area, on the rise by 6% compared to the previous year, thus establishing a new record. Over 55% of them were completed in residential projects located in the administrative area of the city.
Cluj Napoca exceeded the city suburbia in point of the residential projects developed,especially beginning with 2015-2016, thus marking development cycle of the regional residential market. However, surrounding localities have attracted the commissioning pf over 8,000 new houses in the last three years. Floresti, the largest suburbia in Romania, attracted last year the completion of 2,600 new houses, a level lower than 2008-2009 records when bout 4,000 housing units were completed in Floresti every year.
“The residential market in Cluj Napoca resisted relatively well to the shock produced by the present sanitary crisis. The city continues to develop from the macroeconomic point of view and thorough projects with good business plans continue to register satisfying results, in general. Demand had levels similar to those registered last year and prices are, on the average, 10% higher than a year ago,” said Anamaria Burca, managing partner SVN Transylvania.
The number of real estate transactions in Cluj, in the first 7 months of 2020 grew by 25.5% compared to the first 7 months of 2019, according to data of the National Agency of Cadastre and Real Estate Advertising (ANCPI), despite the two months of traffic restrictions during the emergency state.
Sibiu, the second largest residential market in Transylvania and the fifth at national level, with total housing deliveries in the last 13 years larger than the ones recorded in Iasi or Brasov, registered new records in 2019. SVN calculations show that about 2,700 housing units were commissioned last year in the town and the surrounding areas, 18.2% more than in the previous year.
Sibiu is the only significant regional residential market where the number of housing units delivered in town is exceeded by the one in the suburbia. Selimbar and Cisnadie have attracted the delivery of 1,000 new housing units each, annually.
The number of transactions concluded in Sibiu in the first 7 months of 2020 was by 24.5% higher than in the same period of 2019, according to ANCPI data. In this context, the absorption degree of housing units newly developed in town and the surrounding area maintained a satisfactory level.
The most spectacular evolution was recorded in Oradea, where the level of housing units delivered in 2019 doubled compared to the previous year, to 2,161 units, according to SVN Romania.
The doubling of the number of houses built came in the context in which Oradea has known a significant economic development of late, both in the industrial and tourist segments, with capital infusions from emigrated locals, analysts say.
“Oradea residential market is in full development swing, with a growing number of new projects. The town has known a strong development of the industrial segment and has turned into a tourist attraction worthy of consideration, with average and long term development prospects,”said Anamaria Burca.
Considering the lower dimension of the residential market in Oradea, compared to other large towns in Romania, transaction figures are significantly influenced by the delivery of certain stages or projects. In the first 7 months of 2020, there was a 5.7% drop of the number of transactions concluded in Bihor compared to the same period of 2019.
Alba Iulia and Targu Mures are the only towns in Transylvania where 500 to 1,000 new housing units are delivered annually. Alba Iulia recorded the highest development from this point of view, with an increase of 85% of the number of new houses delivered in 2019, thus establishing a new local record.
SVN Romania is one of the largest active players in the real estate consulting market in Romania. The company has two regional offices in Brasov and Cluj Napoca, and is one of the main players in the property management market (SVN Romania/ Property Management & REO Services). It has 200 offices in 8 countries and regions, with 1,600 real estate consultants and administrative staff.