Residential Real Estate - Romania

The Residential Real Estate market market in Romania is expected to reach a value of US$910.30bn in 2024.
This projection indicates a steady growth rate of 2.91% annually from 2024 to 2029, resulting in a market volume of US$1.05tn by the end of 2029.
In the global context, it is worth noting that China is anticipated to generate the highest value in the Real Estate market, with an estimated worth of US$112.9tn in 2024.
The residential real estate market in Romania is experiencing a surge in demand due to an increase in foreign investments.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Romania has been experiencing significant growth and development in recent years.

Customer preferences: Romanian customers have shown a strong preference for residential properties that offer both quality and affordability. They are increasingly looking for modern, well-designed homes that are equipped with the latest amenities and technologies. Additionally, there is a growing demand for properties that are located in convenient and desirable neighborhoods, with access to good schools, healthcare facilities, and recreational areas.

Trends in the market: One of the key trends in the Romanian Residential Real Estate market is the increasing popularity of apartment living. Many Romanians are opting for apartments due to their affordability and the convenience they offer. This trend is particularly evident in urban areas where space is limited and apartments provide a more practical solution for housing needs. Another trend in the market is the rise of sustainable and energy-efficient homes. With growing awareness about environmental issues, Romanian customers are increasingly seeking properties that are built using eco-friendly materials and incorporate energy-saving features. Developers are responding to this trend by incorporating green building practices and technologies into their projects.

Local special circumstances: Romania has a large population of young professionals and families who are entering the housing market for the first time. This demographic group has specific preferences and needs when it comes to residential properties. They are often looking for affordable options that offer a good balance between quality and price. Developers and real estate agents are catering to this segment by offering a range of housing options that meet their requirements.

Underlying macroeconomic factors: The Romanian economy has been growing steadily in recent years, which has had a positive impact on the Residential Real Estate market. Low interest rates and favorable mortgage conditions have made it easier for potential buyers to enter the market. Additionally, the government has implemented policies to support the development of the real estate sector, such as offering tax incentives for property investments. In conclusion, the Residential Real Estate market in Romania is experiencing growth and development driven by customer preferences for quality and affordability, the increasing popularity of apartment living, the demand for sustainable homes, and the favorable macroeconomic factors. These trends and circumstances are shaping the market and creating opportunities for both developers and buyers.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are 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 - Romania

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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