Market Beat
2016
02
The new residential boom. This is how 2015 was
described for the local residential market and the
statistics confirmed: not only that the market has
recovered but in many cities in Romania, including
Bucharest, peaks recorded during the period
2006-2008 were topped.
While the office and retail segments drew the
attention of investors in 2013 and 2014, last
year was marked by significant investments in
residential projects. The stabilization of prices,
the return of confidence of potential buyers and
significantly improvement of financing conditions
and offers led more and more investors to (re)
start projects that put on the market an offer much
better adapted to current demand.
The new residential boom is very different from
what happened before the onset of the economic
crisis. End buyers have completed over 95% of
transactions last year, compared to 2006 - 2008,
when the largest share was held by investors
seeking a profit through resale. This shows a
healthy market.
Furthermore, the purchase of a new house
has become more affordable, a person with an
average income being required a period of less
than 10 years, or less than 120 wages to buy a
one-bedroom apartment in Bucharest, according
to the Coldwell Banker Affiliates of Romania Index
on the affordability of purchasing a new home. In
full boom, before 2008, it was required nearly 400
wages, nearly 33 years!
All the best,
Valentin Ilie, CEO Coldwell Banker Affiliates of Romania
KEYNOTE
2016 began under uncertainty, talks about the
potential effects of the debt discharge law (datio
in solutum) and the continuation of Prima Casa no. 1
program calling maybe into question the viability of Romanian real estate
an investment in a residential project development. consulting company
in 2009 according to
yearly financial
Extremely high current rates of absorption, of results
over 75% in Bucharest and even over 90% in some
large citites in the country can, at least for now,
partially remove these fears. Real estate arm Coldwell Banker
Affiliates of
of IKEA or Liebrecht & Wood are just two of the
Romania
international names that recently announced plans
for residential projects with thousands of homes
that will extend over more than five - seven years.
If investment plans are carried out thoroughly, if
the project draft is well adapted to the target and +15 +2.500
the marketing and sales strategy is drawn up and residential apartments sold
implemented with the help of professionals with projects in in 2015
portfolio
real experience, I strongly recommend a potential
investor to turn its attention towards the local
residential segment.
I wish you a pleasant reading of the Market Beat
study regarding the residential market in Romania
in 2016 and please take into consideration we are
available for custom analysis and market studies
on targeted segments.
Content
Macroeconomics ........................................ 4
Bucharest ........................................ 11
Regional markets ........................................ 18
Center ....................................... 18
West ....................................... 22
South ....................................... 23
East ....................................... 24
Extract data ...

MACROECONOMICS
/Run
 Paul Ichim
Market Beat ROMANIA ECONOMIC REVIEW
Executive Vice-President
2016
Export-Import Bank of Romania EximBank
05

In 2015, the Romanian economy grew by a solid
3.8%, posting one of the highest real growth rates
in the EU. The economys robust growth was driven
by a surge in domestic demand, with household
consumption increasing by 6% yoy (contributing
3.9 p.p. to real GDP growth), and a much-needed
rebound in investment, with gross fixed capital
fomation increasing by 8% yoy (thus adding 1.8 p.p.
to real growth).
p.p. of real GDP, mainly due to weak demand from
the EU, Romanias main trading partner, and a hike
in imports (9% yoy growth) due to high domestic
demand. Romanias weak export dynamics is
somewhat surprising in the context of the leus
relative stability, both in nominal in real terms.
We expect the Romanian economy
to grow by 4% in 2016 on the back
investments, with positive effects on both actual
and potential growth.
At the same time, we expect significantly
improved performance from exports (as the
economic sentiment rebounds in Romanias main
trading partners) and agriculture (in terms of
agricultural output, 2015 was the worst year
since 2012).

of strong domestic demand, further

Domestic demand benefitted greatly from the
increase in households real disposable income,
mainly due to wage increases and fiscal stimuli
(e.g., a cut in the VAT rate applicable to food
products from 24% to 9% starting June 2015), as
well as the plunge in oil prices.
Government consumption contributed 0.5 p.p. to
real GDP growth, while net exports shaved off 2.5
supported by the reduction of the VAT
rate from 24% to 20% starting January
2016 and low oil prices, and the positive
trend in investment.
In the current context of low yields and excess
liquidity in the markets, it is likely that some of
these funds will be directed towards productive

MACRO
2012 2013 2014 2015 2016F
Real GDP (yoy) 0.7 3.3 3.1 3.8 4.0

Potential GDP (yoy) 1.1 1.8 2.5 2.8 3.0

Output gap -2.5 -0.8 -0.3 0.0 0.9

Nominal GDP (bn EUR) 134 144 150 158 165

ECONO
Headline inflation 4.95 1.55 0.83 -0.93 1.40*

Private consumption (yoy) 1.2 1.2 3.9 6.0 5.2

Govt consumption (yoy) 0.1 -6.4 0.0 2.5 3.1

Total investment**** (yoy) 0.4 -7.2 2.9 7.7 5.1

Current account (%GDP) -4.8 -1.1 -0.4 -1.1 -1.5

Budget deficit (ESA) -3.2 -2.2 -1.4 -1.1 -3.0**

MICS
Structural deficit -2.1 -1.2 -0.7 -1.0 -3.0** Source: Eurostat, AMECO, NBR.
Note: Forecasts are provided by EximBank, except *) NBR forecasts
EUR/RON avg. 4.46 4.42 4.45 4.45 4.50
and **) European Commission forecasts; ***) Real effective exchange
RON REER*** -5.2 0.6 2.1 -3.2 3.0** rate vs. 36 industrial countries, provided by the European Commission;
****) Measured by gross fixed capital formation.
Unemployment rate 6.8 7.1 6.8 6.7 6.6**
Market Beat
2016
06
However, it should be noted that there are several
risks that could hinder economic growth in 2016.
The slowdown in industrial output and exports,
in spite of contained unit labour costs, highlights
the urgent need for measures on the supply side
of the economy, such as investment and other
measures aimed at increasing productivity,
non-cost competitiveness and making the business
environment more investor-friendly (acording to
The World Banks Ease of Doing Business 2016
report, Romania ranks 37th out of 189 countries).
At the same time, the uncertainty
surrounding some proposed legislative
measures (most notably the draft law on
the discharge of debt obligations arising
from credit contracts by transferring
the immovable property to the creditor)
poses significant risks to the economy
and financial stability, as well as to the
provision of credit to the real economy, as
acknowledged by NBR.
Another signifincant risk stems from potentially
deteriorating investor confidence due to the
uncertainties surrounding growth in emerging
economies.
This is especially true in the context of the
projected slowdown of the Chinese economy, as
well as weak expected growth in the EU.
ROMANIA ECONOMIC REVIEW
Pro-cyclical policy measures, aimed at stimulating
demand in the context of a positive output gap,
put Romanias hard-won gains in terms of budget
consolidation at risk.
These measures include cuts in the VAT for food
37 th
Romanias rank in The
(from 24% to 9% as of June 2015), two successive
VAT cuts (from 24% to 20% starting January
2016 and from 20% to 19% as of January 2017), a
reduction in the tax on dividends from 16% to 5%,
World Bank Ease of Doing as well as eliminating the special construction tax
Business 2016 report
and extra excise duty on fuel starting 2017.
Nonetheless, the current monetary policy
divergence among the worlds main central banks
might increase the volatility of capital flows in
emerging markets, thus threatening the recent
MACRO
positive trend in FDI in the Romanian economy.
Other risks that might take their toll on investor
confidence are the current immigration crisis in
Europe, the risk of Great Britain leaving the EU and
the protracted crisis of the Greek banking sector;
ECONO
however, these risks are expected to have a limited
impact on the Romanian economy.
The recent developments in fiscal policy also
highlight an important risk to Romanias growth.
MICS
Market Beat ROMANIA ECONOMIC REVIEW
2016

07

computed by Eurostat, which registered values

Corroborated with spending increases (i.e., public
above 2% in the last two months of 2015 and the
sector wages and expected pension increases) and
first two months of 2016.
taking into account the fact that 2016 is an election
year, Romanias (ESA) budget deficit is expected
In this context, we expect the inflation rate to be
to hover around 3% of GDP in 2016 and 4% in 2017,
back in the NBRs target interval in 2017, in spite of
which implies a significant deviation from the
the additional VAT cut from 20% to 19%.
Medium-Term Objective (structural deficit of 1%),
thus triggering the Excessive Deficit Procedure.
40%
Romanias public
debt of GDP in 2017
At the same time, Romanias public debt is (estimation)
expected to gradually rise towards 40% of GDP by
2017 and above 60% by 2026, which threatens the
sustainability of public finances in the long-run.

The gap between the growth rates of exports and

imports in 2015 led to a widening of the current
account deficit, estimated to amount to 1.1% of GDP.
Inflation has exhibited a clear downward
This is projected to continue as the strong trend over the past three years, hitting
domestic demand will likely lead to higher imports; all-time lows in 2015, well outside the
as such, we forecast a current account balance of
central banks target of 2.5 +/- 1 p.p.

MACRO
minus 1.5% of GDP as of end-2016.
This is mainly due to plunging oil prices and the
At the same time, Romania continues to register
reduction in VAT for food products discussed
modest inflows of foreign direct investment:
above, with the outlook for 2016 being heavily
net FDI inflows in 2015 amounted 2.8 bn EUR, or
influenced by the further cut in VAT from 24% to
roughly 2% of GDP.
20% for all goods and services starting January 1st.

ECONO
On a positive note, Romanias improving net
It must be pointed out that given the current
international investment position (from 57.4%
positive output gap (excess demand) and excluding
of GDP as of end-2014 to an estimated 51.4%
the transitory effect of the decrease in taxation,
as of end-2015), thus improving the external
the economy is witnessing inflationary pressures,
sustainability of the economy.
as shown by the HICP at constant tax rates

MICS
Market Beat ROMANIA ECONOMIC REVIEW
2016

08

denominated loans; housing loans amounted

The labour market was largely stable
to just over 10 bn RON, which represents a 57%
in 2015, with the unemployment rate increase over 2014.
decreasing only slightly to 6.7%, one of
the lowest among its peers. However, the lending and housing markets face
a serious threat from the draft law on debt
However, it must be stressed that Romania is
facing a constant decline in its working-age 1250 RON
discharge (datio in solutum) which, if passed in
its current form (i.e., with retroactive application,
population as result of ageing and net migration Minimum wage inter alia), will have two major negative effects:
estimated at May 1st
abroad, which means that it is imperative that
2016
the authorities accelerate education and labour (i) significant disruptions in retail lending due to
market reforms, as well as support the business substantially increased down payments (up to 35
environment in creating jobs for high skilled 40% of the propertys value), lower maturities
workers. (by up to 10 years) and increased costs/financial
burden to debtors,
At the same time, the minimum wage increased to
RON 1,050 since July 2015, with a further increase to and (ii) a sharp drop in the prices of real estate.
RON 1,250 being planned for May 1st, 2016. However, given the current inflationary pressures According to NBR estimates 1 he number of years
(excluding transitory VAT effects, as discussed necessary to raise the required down payment
Monetary policy was extremely accommodative above) and the likely overheating of the Romanian under the new conditions increases to 7.9 years
throughout 2015, with the NBR operating four 25 economy (positive and rapidly widening output from 1.3 years in the case of a Prima Casa Loan
bps cuts in the policy rate, from 2.50% to 1.75%, as gap, relatively low potential growth due to low (5% down payment) and 3.8 years in the case of a

MACRO
well as narrowing the corridor for its lending and investment and weak progress in structural regular mortgage loan (15% down payment).
deposit facilities to +/- 1.5 p.p. from from +/- 2.25 reforms), we cannot rule out a 25-50 bps increase
p.p. in the NBR policy rate towards the end of 2016. At the same time, NBR predicts an average
increase of 44% in the monthly installments for a
This measure is aimed at enhancing the In this policy context, financing costs decreased RON-denominated housing loan (42% in the case
transmission of monetary policy, which is significantly during 2015 and banks granted new of a EUR-denominated loan)2.

ECONO
also supported by the increase in the RON- loans amounting to approx. 53 bn RON, out of
denominated share of bank loans relative to the which 49 bn RON denominated in local currency.
total outstanding amounts (as of end-2015, RON
loans amount for more than half of the entire credit New bank loans to households amounted to
market). approx. 26 bn RON, out of which 25 bn were RON-

1 Considering a household comprising two average-income earning members and a savings rate of 25% and a property priced at 60,000 EUR (-10% under the new conditions) for
which a 35% down payment is required.

2
Assuming a median-value mortgage loan, a 150 bps increase in the applicable interest rate and a 10-year reduction of the maturity of the loan.

MICS
 Market Beat CONTEXT
2016
+10,4%
09 units
completed

+8%
number of

2015
transactions
With more than 11,000 units finalized in Bucharest At the beginning of this year, the
and in the surrounding areas and a little over affordability index in what concerns the
47,000 new houses finalized nationwide, 2015 Best year
purchase of a new home, calculated by for the local
marked the recovery of the local residential
market, as several regional markets, such as
Coldwell Banker, reached an all-time residential market

the ones of Bucharest, Braov, Cluj Napoca, low in the modern history of the local
Constana, Sibiu or Timioara, recorded a greater residential market approx.
number of deliveries compared to the market 139.000
Prima Casa
peak.
mortgages since
2009
Number of years necessary for buying a one bedroom new apartment in Bucharest with an 50 usable area of 50 sqm

32,8
35 27
30

25 17,8 15,8 15,8 14,5

20 13,3 11,6
9,8
15

10

5
ian.-08 ian.-09 ian.-10 ian.-11 ian.-12 ian.-13 ian.-14 ian.-15 ian.-16

Source: Coldwell Banker Affiliates of Romania, NIS, NBR

The improvement of credit terms, by successive
reductions in bank interest rates and policy rate,
which directly impacts the costs of the funding
granted under the Prima Casa (First Home)
program, and wage increases, both in private
and state companies, resulted in an ever growing
number of persons for whom the purchase of a
new home became affordable.
Therefore, it now takes any person less than ten
years to purchase a one bedroom apartment,
given that net average wage and the average
square meter price of a new home, compared to
almost 33 years at the beginning of 2008.
 CONTEXT Market Research
2016

010

+75%
Absorption degree in
On this background, developers have accelerated
investments in the residential area and have either
started a great number of new projects or new stages
Bucharest in 2015 in existing residential complexes or projects which
were put on hold at the beginning of the economic
crisis, being motivated by the good absorption rates, of
over 70%, before the completion of the construction,
for the projects which are well adapted to the existing
demand.
The number of transactions concluded
last year increased nationwide by about
8%, compared to 2014, over 95% of the
transactions being concluded by end users,
compared to 2006-2008 when the most
of the transactions were concluded by
investors seeking a quick profit by resale.
2016 started off with an explosive increase of
the purchases performed by means of Prima
Casa program, on the background of the Datio in
Payment law, and a slight increase in the prices
on certain regional markets, on the background of
a relatively low offer.
The stock of new homes which will made
available on the market this year by developers
will most probably be easily absorbed by the
current demand, provided the funding terms
remain as relaxed as they currently are, although
not all the developers will obtain the expected
results, and more and more schemes and means
of funding buyers will appear on the medium
term.

In 2015 the decrease in bank interest rates resulted in

the resurfacing of investment transactions, the annual
yield in Euros ranging on average between 5% and 7%
but likely to go as high as 9% depending on the project
and the market segment, such yields being much higher
than those provided by bank deposits.
Searching data ...

BUCHAREST
/Loaded
 Market Beat BUCHAREST
2016

012
Offer
While 2015 was the best year in the history of
the residential market of Bucharest and the
surrounding areas, with over 11,000 new homes
delivered to their buyers, exceeding the level
sales being recorded for most of the projects during
the construction works stage, in many cases the
buildings being fully sold to the buyers before the
final acceptance date.
+25%
Increase in delivered
units in 2015
recorded during the market peak, 2016 promises
to set new records, at least in terms of completed
units.

14000
Number of units
delivered in Bucharest
10000

Source:

BU
6000

NIC, Coldwell Banker Affiliates of

6721 10192 8045 6721 5786 5790 8337 10110 11082 +14000 Romania
2000 (est.)
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

The data of Coldwell Banker Affiliates
of Romania shows that over 14,000
units will be delivered this year by the
developers, i.e.a year over year increase
of over 25%.
CHA
Given that the homes of the projects completed
before 2014 are in their turn gradually absorbed by
the market, even if at a slower pace, we estimate that,
under the current market conditions, the total stock
of homes for sale in residential complexes will reach
approximately 8,500 units at the end of this year,

REST
down by 35% compared to the beginning of this year.
The good funding terms, the stabilization of the
prices and the fact that the developers have
adapted to the existent demand better and
better resulted in an extremely high degree of
absorption of over 75% last year, significant
 BUCHAREST
Most of them are projects completed before the
53,5% recovery of the residential market, projects which will
probably be sold in full during the following years,
Mass market units
depending on the adopted price strategies, while the
new supply of homes made available on the market
this year will probably be absorbed at a pace similar to
that of 2015.
The good sale rate recorded by the developers of the
current projects is mainly due to a very high level of
adjustment to the demand.
Therefore, 53.5% of the units to be delivered this
year can be classified as mass market units, a market
segment where the purchases made by means of Prima
Casa program account for an overwhelming ratio of
over 70%, depending on the project.
These projects provide affordable houses, with a good
location in terms of interest points such as shopping
areas or access to the public means of transport and
surfaces similar to those of the old houses.
Low Mass
Market Market
700 - 800 800 - 950
Euro / sqm Euro / sqm
Market Research
2016
013
Approximately 12.3% of the total number of units
to be delivered this year or nearly a fifth of the
mass market category are low market units,
namely projects with smaller areas compared to
those of the homes built before 1990 which are
located on the outskirts of the city, without direct
access to public means of transport, without
general facilities within the projects and with a
relatively low quality of the construction.
On the middle market segment over 5,500
houses dedicated to the middle class will be
completed this year in Bucharest, in semi-central
areas, in the northern part of the city or in large
neighborhoods which ensure an easy access
to the public transport network especially to
the subway and to points of interest, such as
shopping areas or parks.
Middle High
Market Market
1000-1700 +2000
Euro / sqm Euro / sqm
Segmentation of residential market in Bucharest
Source: Coldwell Banker Affiliates of Romania
Market Beat BUCHAREST
2016

014
+1000
The reviving of the middle market
segment also materialized by +3200
the emergence of new residential West Premium
development poles, such as center-
western area, Barbu Vcrescu Aviaiei
+2800
Central / semi-
central units
or Vcreti Tineretului Park area. to be delivered in 2016
The increase in the demand of the potential
buyers resulted in a continuous development of
integrated concept residential projects, providing
a series of facilities and where communities
of thousands of persons have already been
+3200 +3000
established, being true capital suburbs. North South

BU
The increase of the purchasing power also led to +2000
the development of the premium homes segment, East

mainly characterized by a very good location

and by higher quality surfaces and finishing
works, over 1000 premium and luxury units being Area segmentation of units under Source:
expected to be completed this year in Bucharest. construction in Bucharest Coldwell Banker Affiliates of Romania

The boom of the residential market and the Almost 3000 houses will be completed this year in

development of the middle market segment
marked the launch of new projects in almost
all parts of the city, after the southern and the
western part of Bucharest were favorites end
for the development of residential complexes for
years on.
CHA
the semi-central and central areas of Bucharest while
about 2000 new homes will be delivered this year in
the eastern area, which will become one of the main
development poles of the residential segment the
years to come.

Most of the 14,000 homes to be completed in

REST
2016 are located in the western area (22.70%),
followed by the northern area (22.30%) and the
southern area (21.30%).
Market Beat BUCHAREST
2016

015
Demand and Prices
Due to the great number of sales contracted
from the construction stages and the partial
absorption of the homes completed before 2014,
the transactions volume recorded last year on
the residential market of Bucharest and the
surrounding areas reached an all-times high
of more than 10,000 new homes transactions,
purchased almost entirely for residential
purposes, which practically marks the return of
the confidence in the residential market.
Most transactions are still concluded by means
of Prima Casa program, whose main advantage
consists in the low down payment, although
The buyers on the mass market segment are
usually young families, who find themselves at
the beginning of their professional career, for
whom the home to be purchased is their first, who
earn less than EUR 1,300 per month per family and
who want a newly built home and not one built
before 1990, even if such new home is located in
big neighborhoods or at the outskirts of the city,
the purchase price and the access to the public
transport network being the key decision maker.
The increase of the income and the general
increase of the population consumption, in
conjunction with the improvement of the crediting
Prices remained relatively stable throughout
2015, although they registered slight
increases on certain market segments and
in certain areas as a result of a demand
higher than the offer.
The transaction prices of the mass market segment
normally range between EUR 800 950 per useful
square meter, while the average trading prices on the
middle market segment range between EUR 1,200
1,400 per useful square meter.

several financial institutions launched standard
crediting offers with interests similar to those of
the government program.
Over 10,000 transaction closed last
year in Bucharest
BU
offers and of the macroeconomic expectations
resulted in the increase of the demand on the
middle market segment, where the number of
transactions made by means of Prima Casa
program accounts for a third of the total number
of transactions, the buyers being usually persons
who are looking for a home upgrade.

CHA
The demand on this segment consists of buyers or
families whose monthly average income exceeds
EUR 1,500, the price not being the only decision
maker, the location, finishing works or facilities
also having a significant weight.

Given that over 1,000 units are to be completed

this year, the premium segment will also record

REST
good absorption rates from persons with a
household income of over EUR 4,000 and who
postponed the purchase of a home due to the low
number of new offers.
Source: Coldwell Banker Affiliates of Romania
Market Beat BUCHAREST
2016

016
Old Market
In 2016, the transactions with old properties attractive areas, which led to a decrease in the The trading prices on this segment have increased
will continue to account for most of the total number of the transactions with old apartments slightly during the last 12 months, following the
transactions concluded in Bucharest in the compared to the previous year. return of the confidence in the residential market,
residential segment, their main advantage and on the background of the current market
compared to the new properties being their good We estimate that a new house is a valid conditions. No significant changes are expected
location and the easy access to the points of social during the following six months in this respect.
option for a potential buyer if its sale
interest, such as educational institutions, shopping
price does not exceed by 20% the price
centers or leisure places.
of an old house located in the same area.
Due to the development of the middle market
segment, more and more new homes were built in The buyers are willing to pay the price difference
for an increased comfort and for the opportunity
Housing Price Index for two bedroom apartments in of not purchasing a 35 years old house.
Bucharest build between 1980-1990

BU
140

105

CHA
70

35

REST
0
Oct. 08

Mai 11

Sept. 11

Ian. 12

Mai 12

Sept. 12

Ian. 13

Mai 13

Sept.13

Ian. 14

Mai 14

Sept. 14

Ian. 15

Mai 15

Sept. 15

Ian. 16

Source:
Housing Price Index calculated by Ziarul Financiar and Coldwell Banker Affiliates of Romania
Market Beat BUCHAREST
2016

017
Forecast
2016 will be marked substantially by the changes in
the Tax Law, while the Datio in Payment Law will
also have a certain impact on the funding segment
and implicitly on the residential market.
Nevertheless, the investors and bank institutions
will seek and implement new funding solutions
for the potential buyers, taking into account the
creditworthiness of the existing demand, by
reference to the average income and trading prices.
The share of the middle market segment
will continue to increase in the coming
period.
The large areas of land available in areas such
as Barbu Vcrescu, Regie, Theodor Pallady,
Expoziiei or Siseti will continue to be of interest
for the residential projects developers, and
therefore we expect an increase in the number of
units to be completed in these areas during the
following years.
Given the current market conditions, the homes
which will be completed this year will most
probably find their buyers.
However, there will be developers who will not
record the expected results, mainly because of

BU
the non existing demand. Meanwhile, there are
already developers who have a more than six
This will happen due to the expected income
months delay in delivering announced projects.
increase and the fact that more and more persons
who purchased a house by means of Prima Casa
program at the beginning of the program, will be
able to sell it and upgrade to a new house with a
better location and with higher quality finishing
works.

CHA
REST
Analyse multiple data ...

Regional markets
/Merged
Market Beat CENTER
2016

019
Cluj Napoca
Cluj Napoca is considered the second residential
market after Bucharest, due to the high number of
residential projects completed during the last few
years but also due to the price increases of the
last 15 months.
Constructions in the residential area boomed,
driven by the current high demand coming
from young people who are high education
graduates of Cluj Napoca or working in one of the
multinationals which opened an office in the city
during the last few years, the estimated number of
corporate employees being over 20,000 people.
Approximately 2,300 new units will be completed
this year in the city, up by nearly 50% compared to
2014, according to the data provided by Coldwell
Banker Transilvania.
The degree of absorption was of about
95% in 2015, which is one of the reasons
why the prices of new homes of Cluj-
100 %
Absorption of units
delivered in 2015
Napoca increased by over 10% during the
last nine months.
We estimate that this high degree of absorption will
continue in 2016, depending on the developments in
the funding conditions, while prices will no longer
have any reason to go up.
Cluj Napoca will remain one of the main residential
markets of Romania, due to the foreign investments
in the area but also due to the population migration,
Cluj Napoca attracting tens of thousands of students
annually. In the medium term, new residential
development poles will appear, such as the area

Most of these units are part of the mass and
middle market segment, in projects such as
Bonjour, Contemporano, Platinia or Sophia,
but the premium segment has also developed
significantly, Riviera Luxury Residence being
completed in 2015.
CEN
of Parcul Feroviarilor, which benefits from a
public project for the rehabilitation of the urban
infrastructure, or Colonia Sopor, which has a great
location and large available plots of land.
Units delivered in Cluj Napoca between 2007-2016
2300*

The residential projects of Cluj Napoca will be 1500*

TER
1236 1220
1126
supplemented by the ones of Floreti, where we 907
889
estimate that approximately 1,500 new units, all in 398 457
189
the low market segment, will be completed this year.
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016
Source:
NIS, Coldwell Banker Affiliates of Romania;

* Coldwell Banker Affiliates of Romania estimation

Market Beat CENTER
2016

020
Braov
2015 can be considered the comeback year for
the residential market of the city at the foot of
Tampa mountain, with over 1,500 units sold in
projects such as Avantgarden, Isaran or Sanpetru
Residence, up by 50% compared to the previous
year.
The degree of absorption rose to almost 100%,
as the homes that were completed the previous
year and that have not been sold so far will be
absorbed in the near future.
The recovery of the residential market also marked the
revival of the interest in the investment segment, with
buyers who purchased a home for leasing purposes,
6,5 %
Potential annual
the annual yield in Euros being of approximately 6.5%. renting yield
The foreign investments undertaken in the area by Ina
Schaeffler, Draxlmaier, Stabilus or Immochan as well
as the medium-term attractiveness of the city for new
investments in the industrial segment will keep Brasov
in the range of interest of developers of residential
projects.

Residential developers of Braov currently Units delivered in Braov between 2007-2016

have about 1,750 homes in progress, with
delivery terms in 2016. 1750*

1500*
Prices will remain stable during the following
period, the price prices ranging between EUR 650

CEN
949 987
906
762 763
and EUR 750 per usable square meter on the low 604 713

market segment, between EUR 750 and EUR 900 283

per usable square meter on the middle market
segment and between EUR 950 and EUR 1,250
euro per useful square meter on the premium
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016
segment, luxury homes being sold for an average
price of EUR 1,500 / usable sq.m.
Source:

TER
NIS, Coldwell Banker Affiliates of Romania;

* Coldwell Banker Affiliates of Romania estimation

Market Beat CENTER
2016

021
Sibiu Bistria

Sibiu has lately been the largest residential
development market, together with Cluj
Napoca, the data provided by Coldwell Banker
showing that more than 2,000 new homes were
completed last year in the city
At this time around 3,500 new units
are in various stages of development
being scheduled for delivery in 2016,
if the developers meet the announced
deadlines.
The Vest-Turnisor area has been a residential
complexes construction pole, as several projects
are currently in progress which include from a
few tens of units to over 1000 units. All these
will be supplemented by a few more hundreds of
+ 5,500
The data of Coldwell Banker shows that a low
number of homes located in residential complexes
was made available in Bistrita in 2015, while
Units delivered in
approximately 270 units 2016 will be finalized in Sibiu in 2015-2016
2016, most of them being located in areas such as
Libertii, Sub Cetate and Crinilor. Prices remained
relatively stable throughout 2016, as new one-
bedroom apartments sell for prices ranging between
EUR 25,000 and EUR 45,000, depending on their
location, while new houses sell for prices that start
at EUR 55,000.
Units delivered in Bistria between 2007-2016
828
525
485
361

CEN
apartments in projects such as Alma, Belvedere 176
253 265*
171 165*
or Magnolia Residential Complexes. The prices 83

of a new apartment one-bedroom apartment in

Sibiu range between EUR 30,000 and EUR 50,000,
depending on the market segment they belong
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016
to, while houses are sold for prices that start at
EUR 85,000. By comparison, old one-bedroom Source:
apartments sell for prices ranging between NIS, Coldwell Banker Affiliates of Romania;
* Coldwell Banker Affiliates of Romania estimation
EUR 30,000 and EUR 45,000, depending on their

location.
The absorption rate of the new recently
competed homes has been very high, Sibiu being
characterized by an economic effervescence, as
the investments made by the German companies
in the area, such as Continental and Marquardt
Schaltsysteme, but also other companies in
different business areas (Ambient, Polisano,
Compa etc.), resulted in the development of a
group of good solvency buyers.
TER
Deva
500 units were delivered in Deva during the last two
years, new one-bedroom apartments selling for
prices ranging between EUR 40,000 and EUR 48,000,
compared to EUR 25,000 EUR 35,000 for similar old
apartments.
The data provided by Coldwell Banker shows that
approximately 100 units will be delivered this year in
Deva, in Grigorescu neighborhood.
Market Beat CENTER
2016

022
Trgu-Mure
About 200 new residential units will be
completed this year in Targu-Mures, compared
with approximately 250 the previous year,
according to the data provided by Coldwell
Banker. The most important development area
in the city is Tudor neighborhood, followed by
the Cantemir area. Prices of new one-bedroom
apartments range between EUR 38,000 and EUR
55,000, compared to the prices for similar old
apartments which range between EUR 30,000
and EUR 45,000, while new houses sell for prices
that start at EUR 100,000.
Units delivered in Trgu-Mure between 2007-2016
Miercurea Ciuc
Miercurea Ciuc is also one of the local residential
markets where only a few tens of units are
completed annually, according to the National
+ 500
Units delivered in
Institute for Statistics. Prices of new apartments Trgu Mure in
2015-2016
range between EUR 650 and EUR 850 per square
meter, while old apartments sell for prices which are
up to 50% lower.
Sfntu Gheorghe
Sfantu George is also one of the poorest county
capital cities of Romania in terms of newly developed
residential complexes, as between 40 and 50 homes
are built on average annually from private funds.

Alba Iulia
250*
222 210*
194

CEN
107 91 About 200 units located in residential projects
65 74 68 64
will be completed this year in Alba, down from
approximately 270 units in each of the past three
years. New one-bedroom apartments sell for prices
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

ranging between EUR 35,000 and EUR 45,000, the

Source: NIS, Coldwell Banker Affiliates of Romania;
most important development area being Cetate area.
* Coldwell Banker Affiliates of Romania estimation
Units delivered in Alba Iulia between 2007-2016
Zalu

TER
307
254 263 270*
246
Zalau, the capital city of Salaj County, has one 173 227
190*

of the lowest residential markets in the central 122 134

area of the country, with only a few tens of units

scheduled to be completed this year.

Prices of old one-bedroom apartments range

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

between EUR 20,000 and EUR 35,000, while new

ones sell for prices starting at EUR 50,000. Source: NIS, Coldwell Banker Affiliates of Romania;
* Coldwell Banker Affiliates of Romania estimation
Market Beat WEST
2016

023
Timioara
During the last few years the biggest local real
estate market in the western part of the country
was the scene of major investments in the office
and commercial spaces segment, the residential
segment being targeted by the investors only
recently.
The data provided by Coldwell Banker shows that
approximately 1,000 units located in residential
complexes are currently in progress in Timisoara,
compared to 2015 when about 650 units were
completed in the city, the most important
projects being Venus, Uranus or Adora Forest.
Oradea Baia Mare
Last year, the capital city of Bihor county was one The capital city of Maramures county is the smallest
of the most important residential markets in the residential market in the western part of the country,
western part of the country, with approximately 500 with about 100 units completed annually, according to
completed units. the INS data.
The local investments which will be made by However, new one-bedroom apartments sell for prices
Eberspacher or Faist Mekatronic will generate nearly which are slightly higher than those of Satu Mare i.e.
1,000 new jobs, an upward trend being recorded for EUR 32,000 EUR 38,000 in the central area and EUR
the local economy during the last few years. 2016 26,000 - EUR 30,000 for one- bedroom apartments
is expected to be similar in terms of the residential located in the semi-central area.
segment of the local market, as several hundreds of
units will be delivered from several projects such as Units delivered between 2007-2016
Ioia, Prima or A-Red.
2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016*

Timisoara will experience an exponential growth Sale prices range between EUR 42,000 and EUR Timioara 536 719 467 421 413 413 403 519 650 1000
in the residential segment during the coming 48,000 for one- bedroom apartments located in Arad 822 1088 572 203 286 216 241 428 558 650
years, as large-scale projects such as City of the central area and between EUR 32,000 and EUR Oradea 635 1377 807 536 613 543 388 396 500 700
Mara have already been announced. 39,000 for one- bedroom apartments located in the
Satu Mare 209 496 386 141 135 108 112 107 141 85
semi central area, while house prices start at EUR
Baia Mare 115 258 272 241 123 116 138 91 96 100
45,000.
Arad Source: NIS, Coldwell Banker Affiliates of Romania;
* Coldwell Banker Affiliates of Romania estimation

About 600 homes were completed last year

Satu Mare
in Arad, up by over 30% compared to 2015,
according to the data provided by Coldwell
About 150 residential units were completed last year
Banker.
in Satu Mare, up by 50% compared to last year, by
Davilas, Zirmer-Bud and Austria Invest.

VEST
And approximately 200 more units are planned to
be completed by Ared in 2016. In terms of prices,
New one-bedroom apartments sell for prices which
new one-bedroom apartments, located in the
range between EUR 30,000 and EUR 34,000 while
center of Arad, currently sell for prices ranging
houses sell for prices that start at EUR 40,000.
between EUR 42,000 and EUR 48,000, while the
average price for houses ranges between EUR
40,000 and EUR 62,000.
Market Beat SOUTH
2016

024
Background Piteti Constana

Most of the county capital cities in the southern The capital city of Arges county has one of the most This seaside city has the largest residential market in
part of Romania have small residential markets dynamic residential markets in the southern part of the southern part of Romania, after Bucharest, with
with only a few tens of units completed annually, Romania, with over 500 residential units planned for more than 2,000 units completed annually according
the lowest national values being recorded in development in 2017. to the data provided by Coldwell Banker Affiliates of
Resita and Tulcea, where less than 15 homes were Romania.
completed in 2014, according to the INS data. Furthermore, we estimate that the city will
experience a significant development on the offices Apartments sell for prices which range between EUR
spaces segment. The average prices on the new 650 and EUR 900 per usable square meter, while
Craiova houses sell for prices which start at EUR 250 per
apartments segment range between EUR 700 and
EUR 1,000 per square meter, the trend being one of usable square meter.
Craiova is the largest residential market in the
stabilization.
south-western part of Romania, with more
than 500 units completed last year, according
Units delivered between 2007-2016
to estimates of Coldwell Banker. The most Ploieti
important projects developed in the city during 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016*
the last few years or currently in progress include Being one of the main residential markets in
Craiova 510 544 492 399 227 270 426 496 550 700
Magnolia, Safta Residence, Bujorului Residence Muntenia and due to its proximity to Bucharest,
Pitesti 251 433 658 201 243 189 240 192 200 200
or Satul German. Ploiesti attracted major investment from developers
also present in Bucharest, such as Adama, Irish Ploieti 208 71 156 119 201 186 125 76 100 200

The cheapest one-bedroom apartments are Park or Mica Rom being two of the most important Constana 659 795 1783 992 1305 920 1594 1419 +1600 +2000
found in Craiovia and Cornioiu areas, where complexes.
the average price per square meter is EUR 750, Source: NIS, Coldwell Banker Affiliates of Romania;
* Coldwell Banker Affiliates of Romania estimation
while the prices of the apartments in Bujorului Sales prices for new one-bedroom apartments range
Residence for example go as high as EUR 1,000 between EUR 38,000 and EUR 47,000, compared to
per square meter. similar old homes which sell for prices that start at
EUR 29,000 and can go as high as EUR 44,000.
The average term development potential will
remain high due to the investments announced

SUD
by Ford or other companies such as ETI, one of
the largest food companies in Turkey.
Market Beat EST
2016

025
Background
According to the INS data, the eastern region of
Romania is a small sized residential market, only
a few tens of units being finalized in all county
capitals cities annually, except for Iasi, Bacau and
Suceava.
Suceava
Suceava is the most developed market of the north-
eastern region of Romania, with approximately
150-200 units finalized annually in residential
projects. The average prices per square meter start
at EUR 700 and can go as high as EUR 900.

Iai
The traditional capital city of Moldova region is
also the most developed regional market, with
approximately 1,400 units in development in the
city this year, up 40% compared to the previous
year, according to the data provided by Coldwell
Banker Affiliates of Romania.

The flow of students, the investments made

by the IT and services companies but also the
offices spaces and retail projects made Iasi ever
more attractive for the developers of residential
projects, projects such as Lazr Residence,
Concept Residence, Newtown Residence and Lake
District being currently in progress.

Sale prices per square meter start at EUR 1,250

for the new apartments located in central areas
and at EUR 900 for new apartments located in
semi-central areas, while old apartments have

EST
prices that are up to 25% lower.
Market Beat

Coldwell
2016

026

Banker
3,000 45 212 86,000
Offices Countries bn. $ in brokers
sales volume

Coldwell Banker Affiliates of Romania

www.cbimobiliare.ro