The Bucharest-Ilfov area is the perfect place for those interested in the real estate market. For clients, the most varied offers can be found here. For builders, developers, or simple workers, this is where the most ongoing projects are located. Whether it is about the construction of apartment buildings or houses, office or commercial spaces, or just renovations, the Bucharest-Ilfov area has transformed into the point with the highest real estate activity.
In the Bucharest-Ilfov area, there is a lot of construction, just as much renovation, and modernization to match. Many of those who are not yet actively involved in the field are prospecting the market. It is no longer just about the major players. Ordinary people, with a set of knowledge in the field and a sufficient budget, are re-entering the real estate game in large numbers. Regardless of whether it involves minor or large-scale works, the Capital and its surroundings are in first place regarding the dynamics of the local construction segment.
„Mainly, those active in the real estate market are men aged between 35 and 65, particularly interested in private and business real estate investments, namely apartment blocks, villas, or company headquarters or commercial spaces. There is an increased appetite among private individuals for real estate investments, renovations, and interior design,” according to an Arabesque study.
All data shows growth in the construction market. However, fears of a collapse worry the experts.
Furthermore, the hypothesis of real estate market growth is also supported by the NIS (National Institute of Statistics). According to the institution’s data, in January of this year, nearly 9% more works were recorded than in the same period last year. This advance is supported especially by works carried out on residential buildings. In these cases, maintenance, current repairs, and capital repairs are responsible for a good part of the growth. But however encouraging this sounds, the increases cannot be stable without economic assistance.
„After a relative freeze in construction, both companies and the population are returning to the investment sector against the backdrop of increasing confidence in the economy. The data confirms a positive trend which, to consolidate its evolution, needs support from the banking environment and a stable exchange rate. Supporting investments in infrastructure, and in construction in general, generates healthy economic development, which Romania needs,” show Arabesque officials.
A record level of Romanian investments in construction is estimated in the region
If treated with care, this growth could materialize into a record level of Romanian investments in construction in the South-Muntenia area. A threshold of 6.4 billion lei is therefore estimated to be reached by the end of this year. And this performance would not have been possible without the increasing involvement of small builders. This would be valid for the entire Southern region, not just for Bucharest and Ilfov.
„Counties such as Arges, Calarasi, Dambovita, Giurgiu, Ialomita, Prahova, or Teleorman have significant growth potential, based on the confidence of companies and small entrepreneurs in a projected medium and long-term stability, which allows businesses to grow,” according to the cited study.
Thus, while in 2014, the number of construction companies in the South-Muntenia region was 5,820 units, in 2016 the estimated number is over 6,200 companies, mostly small and medium-sized. But growth on one level implies the advancement of related levels. Thus, healthy growth in the construction field means hundreds of other revitalized or newly established businesses in areas such as construction materials, decor, landscaping or interior design, architecture, etc.
„Restarting the engines of the economy allows for horizontal development, meaning the attraction of collateral businesses from all fields, from infrastructure, real estate, and industry, to trade, services, and tourism,” explain the cited specialists.
Consequently, the number of employed persons is also increasing. In construction alone, in the South and Muntenia region, the number of employees is increasing by up to 8 thousand people each year. All that is needed now is a balance to maintain or even increase the optimism currently felt in the construction market.
Source: Imopedia/Media
Frequently Asked Questions
Which regions are leading the real estate activity in Romania?
The Bucharest-Ilfov area remains the leader, but the South-Muntenia region, including counties like Argeș and Prahova, is showing significant growth potential.
Who are the primary individual investors in the current market?
Studies indicate that men aged 35 to 65 are the most active, focusing on private investments such as villas, apartment buildings, and commercial spaces.
What factors are essential for sustaining growth in the construction sector?
Maintaining the positive trend requires support from the banking sector, a stable exchange rate, and consistent investment in infrastructure.