Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - Romania

Romania

In Romania, the Residential Real Estate Transactions market market is anticipated to witness a significant increase in the transaction value, projected to reach US$7.12bn in 2024.
Furthermore, this market segment is expected to demonstrate a steady annual growth rate (CAGR 2024-2029) of 4.16%, ultimately resulting in a market volume of US$8.73bn by 2029.
The residential real estate market in Romania is experiencing a surge in demand due to favorable economic conditions and increased investment opportunities.

Key regions: Germany, Europe, Asia, United States, United Kingdom

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Analyst Opinion

The Residential Real Estate Transactions market in Romania is experiencing significant growth and development.

Customer preferences: Customers in the Residential Real Estate Transactions market in Romania are increasingly looking for properties that offer both affordability and quality. They are seeking properties that are well-maintained and have modern amenities. Additionally, there is a growing demand for properties in urban areas that are close to transportation hubs and amenities such as shopping centers, schools, and healthcare facilities.

Trends in the market: One of the key trends in the Residential Real Estate Transactions market in Romania is the increasing demand for apartments. This is driven by factors such as changing lifestyles, urbanization, and the desire for convenience. Apartments are seen as a more affordable option compared to houses, and they also offer a range of amenities such as security, parking, and shared recreational spaces. Another trend in the market is the rise of real estate investment. Many individuals and companies are investing in residential properties as a means of generating income through rental yields or capital appreciation. This trend is driven by factors such as low interest rates, favorable tax policies, and the stability of the real estate market.

Local special circumstances: One of the unique aspects of the Residential Real Estate Transactions market in Romania is the high level of homeownership. The majority of Romanians aspire to own their own homes, and this cultural preference has a significant impact on the market. Additionally, the government has implemented policies to support homeownership, such as providing subsidies for first-time buyers and offering mortgage loans with favorable terms.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the Residential Real Estate Transactions market in Romania. The country has experienced steady economic growth in recent years, which has resulted in increased disposable income and improved living standards. This has in turn fueled demand for residential properties. Furthermore, low interest rates have made mortgages more affordable, encouraging more individuals to enter the property market. Additionally, the government has implemented measures to stimulate the real estate sector, such as reducing taxes and simplifying administrative procedures. In conclusion, the Residential Real Estate Transactions market in Romania is experiencing growth and development due to customer preferences for affordable and quality properties, the increasing demand for apartments, the rise of real estate investment, the cultural preference for homeownership, and favorable macroeconomic factors such as economic growth and low interest rates. These factors are driving the market forward and creating opportunities for both buyers and investors.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

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.