Residential Real Estate Leases - Romania

The Residential Real Estate Leases market market in Romania is expected to witness significant growth in the coming years.
By 2024, the revenue of this market is projected to reach US$3.15bn.
Among the different segments within this market, Apartment Leases are expected to dominate with a projected market volume of US$2.52bn in 2024.
This indicates the strong demand for residential properties in Romania.
Looking ahead, the revenue of the Residential Real Estate Leases market market is expected to maintain a steady growth rate.
With an annual growth rate (CAGR 2024-2029) of 6.60%, the market is anticipated to reach a volume of US$4.34bn by 2029.
This positive trend reflects the continuous interest and investment in the residential real estate sector in Romania.
The residential real estate leasing market in Romania is experiencing a surge in demand due to the country's growing economy and favorable investment climate.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Romania is witnessing significant growth and development in recent years.

Customer preferences: Customers in Romania are increasingly opting for residential real estate leases due to several reasons. Firstly, leasing provides them with the flexibility to change their living arrangements as per their requirements. This is particularly appealing to the younger generation who prioritize mobility and freedom. Additionally, leasing allows individuals to avoid the high upfront costs associated with purchasing a property, making it a more affordable option for many.

Trends in the market: One of the key trends in the residential real estate leases market in Romania is the increasing demand for urban rental properties. As more people move to cities for better job opportunities and lifestyle, the demand for rental properties in urban areas has surged. This trend is driven by factors such as the availability of amenities, proximity to workplaces, and a vibrant social scene. Landlords and property developers are capitalizing on this trend by investing in the construction of rental properties in prime urban locations. Another trend observed in the market is the rise of co-living spaces. Co-living offers individuals the opportunity to rent a room within a larger shared property, providing them with a sense of community and shared living experience. This trend is particularly popular among young professionals and students who are looking for affordable and sociable living arrangements.

Local special circumstances: Romania has experienced a significant increase in foreign investment in its real estate market in recent years. This has contributed to the growth of the residential real estate leases market, as foreign investors often opt to lease properties rather than purchase them outright. The influx of foreign investment has also led to the development of high-quality rental properties, catering to the growing demand from both local and international tenants.

Underlying macroeconomic factors: The growth of the residential real estate leases market in Romania can be attributed to several macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer confidence. This has translated into higher demand for rental properties as individuals seek to improve their living standards. Furthermore, low interest rates have made it more attractive for individuals to lease properties rather than take on the financial burden of a mortgage. Additionally, the government has implemented policies to support the development of the rental market, such as tax incentives for landlords and the introduction of regulations to protect tenants' rights. In conclusion, the residential real estate leases market in Romania is witnessing significant growth and development due to customer preferences for flexibility and affordability. The market is characterized by the increasing demand for urban rental properties and the rise of co-living spaces. The influx of foreign investment and favorable macroeconomic factors, such as steady economic growth and low interest rates, are also driving the market's expansion.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Romania

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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