Supply of new homes in Bucharest is a quarter of demand

Real estate developers will deliver around 40,000 new apartments onto the Bucharest market in the coming five or seven years, three times lower than the demand, estimated at 130,000 units, Simina Istrate, head of the investment team within the residential division of Colliers International, told ZF. “This year, 9,500 new apartments are available for sale in Bucharest, with the other units to be absorbed by the market in the coming few years, however, they are not enough to cover the apartment shortage,” said the Colliers representative in a seminar on real estate, organised by Business Standard daily. The first quarter of this year saw the acquisition of 2,000 new apartments, 81% more than the same time last year. The sales price of new apartments climbed by up to 30% in the first quarter of this year against the same time last year. “For new apartments, prices will continue to go up, due to the rising price of land and construction materials,” she added.