The capital is undergoing another real estate boom, with new buildings rising rapidly in all neighborhoods and surrounding areas. The number of new homes delivered this year will be 25% higher than last year, when new records were set. In Bucharest and adjacent areas, more than 14,000 units will have new owners, representing the highest number of new homes completed in a single year since the Revolution.
Construction Fever in Bucharest: 2016, the Year with the Most New HomesThe upward trajectory of the capital’s real estate market continues. Last year, real estate specialists noted with delight that the number of projects grew spectacularly across all segments, yet they remained quite reserved regarding the future. After the first four months of 2016, the figures manage to exceed all expectations.
„Over 14,000 homes in residential projects will be completed in 2016 in Bucharest and its surroundings, an increase of over 25% compared to the previous year, representing the highest completion figure in the history of Romania’s modern residential market,” states the most recent Coldwell Banker Affiliates of Romania study on the 2016 residential market.
The real estate boom years brought homes dedicated to those with generous incomes, as well as premium properties. After the crisis, developers shifted focus, building primarily for those with limited budgets. Currently, this trend persists – more than half of the units to be completed this year are dedicated to low-budget buyers.
„The largest share of these homes, representing approximately 53.5%, targets the mass market segment—projects located in peripheral areas of Bucharest or within large neighborhoods, generally offering good access to the public transport network, medium-quality finishes, and sizes typically similar to older homes,” emphasize Coldwell Banker representatives.
Although the low-cost housing segment represents the largest part of the new unit stock, the supply of properties dedicated to the middle class has also risen significantly. The high number of hires by multinationals has created a niche of clients with different requirements, specialists note.
„The development of the office segment in the northern and central-western areas of Bucharest, where over 100,000 people work, as well as rising incomes, has prompted more developers to build projects targeting the middle market class, with over 6,000 homes currently under construction in Bucharest and its surroundings, representing approximately 39% of this year’s total completions. These homes benefit from a better location, with easy access to modern office buildings, shopping centers, and parks,” explain Coldwell specialists.
Across the city, the supply of new homes has balanced out over the last year: real estate consultants note that the southern and western areas no longer attract the largest share of developed residential projects, with a similar number of homes to be delivered in semi-central and northern areas in 2016. At the same time, the eastern area is beginning to emerge as a new pole of residential development, with nearly 2,000 homes to be completed in 2016.
Frequently Asked Questions
How many new homes were completed in Bucharest in 2016?
Over 14,000 residential units were completed in Bucharest and its surrounding areas, marking a post-1989 record.
Which market segment is currently leading the real estate supply?
The mass-market segment leads with 53.5% of the total supply, focusing on affordable housing in peripheral areas or large neighborhoods.
What factors are driving the growth of the middle-market segment?
The expansion of office hubs in the North and Center-West, employing over 100,000 people, has significantly boosted demand for middle-market housing.