Real estate deals reach $7.5bn

The total value of real estate transactions in Romania will increase to $7.5bn this year, up from a value of $6.6bn in 2003, and should be close to $11bn by 2007, according to data from Raiffeisen Banca pentru Locuinte (Raiffeisen Housing Bank). “Forecasts point to a growth in the volume of real estate transactions of about one billion dollars a year. The number of housing units being traded on the market is estimated to increase by 30% every year,” said Ionut Costea, president of Raiffeisen Banca pentru Locuinte. Romania still needs a great deal of new homes, explained Costea, as market surveys show that more than 11% of the current 8 million housing units in Romania involve more than two people sharing the same room, meaning some 800,000 new homes are needed. In addition to this, over 56% of existing homes are in need of renovation and modernisation. More than eight million Romanians want to improve their housing situation in the next few years, either through modernisation (6.4 million people) or by buying a new home (1.8 million people). “These data show the high growth potential of the real estate market in Romania, which is already attracting significant investment from financial institutions, investment funds and construction companies,” Costea said. ZF