ROMANIAN RESIDENTIAL

MARKET REPORT
1st quarter 2018
CONTENTS

3 Real estate market overview

5 Price index of the residential real estate
6 The quarterly evolution of the residential real estate prices
7 The evolution of prices in the county seats
12 Price trends across neighbourhoods
23 The demand for apartments and houses for sale
25 The number of listings for sale in major cities
26 The number of listings for rent in major cities
27 ANCPI transactions
29 Time on market in Bucharest
30 Negotiation margin
31 Construction of new dwellings (INS)
33 Residential projects in Bucharest
34 About us
REAL ESTATE MARKET OVERVIEW
Since the second part of the last year, the residential real
estate market has entered a new phase, of gradual
slowdown in price rises. Thus, the annual evolution
registered in the second quarter of 2017, of 12.9%, declined
to 6.4% in the first quarter of this year. Moreover, the
market data indicates a price increase in Q1 2018
compared to Q4 2017, of 1.4% - an advance below the
quarterly growth average recorded in 2017, of 2.2% or in
2016, of 2.9%.
The statistical analysis of the evolutions in the residential
market shows that we are witnessing a moment when the
market is captive between a high level of demand and a
relatively low offer. The date show that the demand for
apartments and houses for sale is still strong, with an
advance that is cumulated at the level of the 6 major cities
analysed, of 17%, in the last year: from +6% among
Bucharest residents, culminating with +49% among Iasi
residents. If we look at the evolution of the demand for the
last 3 years, starting with Q1-2015, it is obvious that it
records a significant increase, of 76% - the maximum
being recorded in Iași, of +217%.
In the last year, we have talked about the insufficiency of
the offer on the market both in terms of number of
properties, and as affordable prices for the population. The
data over the last 12 months in the six major cities
Romanian residential market report - Q1 2018
indicates a negative evolution of the stock of apartments
and houses of 5.9%. The only city with a positive evolution
is Cluj-Napoca, with 8.6%, the other cities recording
decreases between 0.2% in Iași and 12.3% in Bucharest.
Also, the demand for cheap housing has a high volatility
dictated by the First House (Prima Casă) program, the
volume of the offer on this segment being continuously
decreasing, and the new constructions fail to cover the
differences in the market.
Over the last four years, there has been a tendency to
increase the sale period of the residential real estate. In the
case of apartments, the growth is slower, from 2 months
in 2014 to 3 months in 2018, and the period of sale for
houses will double, from 4 months in 2014 to 8 months in
2018. Both sellers and buyers have a prudent attitude and
are more informed.
The analysis of the evolution of the average prices per
square metres of the apartments over the past 10 years
shows that the localities in the western half of the country
have recovered the most from the price drops caused by
the economic crisis. Compared to the first quarter of 2008,
Cluj-Napoca is the only city in Romania that not only
recovered the price drop, but even reached an average
price per square metre 15.2% higher than 10 years ago.
The capital of Transilvania is followed by Oradea, with a
current decrease of 0.7%, Timișoara and Arad by -6.5%,
Alba Iulia by -9.3% and Satu Mare by -10.5%. The capital is
among the cities with the largest decline, having to
recover 41.8% of the level of the average price of 2008.
Although the increase rate of the prices has slowed down
in the first quarter of this year, we are facing with a
continuous appreciation behaviour of the apartments
based on the increase of the demand and the lack of the
offer. A sustainable growth in the value of the real estate
should be supported by investments in infrastructure,
utilities and quality social services accessible to
communities in the new residential complexes.
Dorel Niță
Head of Data and Research, Imobiliare.ro
Project Manager, AnalizeImobiliare.ro
3
The evolution of the behaviour of buyers since the last crisis

to have children, the distance to kindergartens and

schools is essential. Many buyers prefer a location in their
proximity rather than the job.

The developer’s reputation is critical to all clients, being an

elimination criterion in many cases. In 2008, sale and
purchase promises were currently signed for projects that
did not even have a construction permit. Under the
current conditions of access to information, the
developers who have made mistakes or have not
honoured their promises are strongly sanctioned by the
market. The profile of a trusted developer should meet the
following criteria: to have financial strength, a serious
portfolio of completed projects and to have passed
through the crises with a clean reputation.

The quality of the project does not necessarily mean

luxury finishes. A successful project is the one that suits
the needs and budgets of the buyers to whom it is
We are 10 years after the real estate crisis in Romania that
addressed. Whether it is an economic, average or luxury
radically changed the behaviour of participants in the real
project, most clients have a set of expectations for the
estate market. The buyers were then preoccupied with the
building level. Any element in addition to the expected
price and structure of apartments, they had an
level means a potential loss of profit, and the client is not
overwhelming confidence in the promises of the real
willing to pay for it.
estate developers, and did not take into account the
potential risks of the projects. Another important trend is connected to the decrease of
the interest in old apartments. We have met many clients
A great deal of the today’s clients keeps fears based on
who call the old apartments as ‘second hand’, putting
experiences that existed during the crisis. Now, they are
them on a clearly inferior level compared to the new
much more informed, reserved and careful to details: they
housing. The new generation of buyers is very keen on
consult with specialists, study the real estate field, require
the functionality of the space, preferring new projects on
due diligence analyses of the property documents and
the grounds that they offer a multitude of compartments
carefully analyse the sale and purchase pre-contracts.
and a variety of facilities, unlike the old blocks that are built
by the same pattern.
The buyer has 3 criteria based on which he/she makes
the choice: location, developer’s reputation and
The developers who understand the clients’ wishes and
project quality.
manage to overcome their fears now have the
opportunity to make profitable profits. Otherwise, they risk
The ideal location for a successful project should be to
to remain with the project unsold.
provide the easy access to the transport means and to
provide a traffic solution appropriate for cars. However, in
the urban agglomerations, even with the best links, Cosmin Slave
proximity plays an essential role. Considering that most of General Manager
the clients are at the age at which they have or are about Arcadia Apartments Domenii

4 Romanian residential market report - Q1 2018

PRICE INDEX OF THE RESIDENTIAL
REAL ESTATE

The housing in Romania appreciated in the first quarter of
2018, overall, by 1.4% compared to the previous three
months - a relatively small figure compared to the
increases recorded in the recent years. According to
Analize Imobiliare's data, the price index requested for the
residential real estate is currently at a value of nearly 129
points (compared to the basis calculation of 100 points,
which applies for 2015).
Compared with the same period of the previous year, the
current level of the sellers’ claims is 6.4% higher. For
comparison, the same indicator was 12.9% in the last 12
months, and it reached 9.1% in the last quarter of 2017.
Therefore, it is obvious that the downward trend in the
growth rate of prices - which has begun to be felt on the
domestic residential market since the second half of the
last year - is maintained.
This trend is confirmed by the information centralised by
the National Institute of Statistics (INS) and Eurostat, used
for the development of an index of the final sales values
for the housing in Romania. Thus, the (provisional) data for
the fourth quarter of 2017 shows a 1.2% increase in the
trading prices compared to the previous three months. For
comparison, the sellers’ expectations increased by 1.9%
over the same period - which shows that there is a
discrepancy between the two price categories.

The downward trend in the growth rate of prices - which has begun to be
felt on the domestic residential market since the second half of the last year
- is also maintained in the first quarter of this year.

Residential price index (2015=100)

250

200

Anual evolution in 2018-Q1: +6.4%

Decreasing percentage compared to
annual evolution in 2017-Q1: +12.9%
150

100

50

0
0 2

0 4
0 2

0 4

0 2

10 4
08 3
06 3

09 3
0 2

0 4
0 1
06 1

07 3

09 1

10 2

11 4

15 2
10 3

12 2

16 4
13 4

14 2

15 4

16 2

17 4
07 1

15 3
12 3

13 2

14 4

14 3

16 3
10 1

17 2

18 4
13 3

15 1

1
17 3
11 2

12 4
12 1

14 1

16 1
11 3

13 1

17 1
11 1
20 8-Q
20 6-Q

20 9-Q
20 8-Q
20 6-Q

20 7-Q

20 9-Q
20 8-Q

20 -Q
20 -Q

20 - Q

20 - Q

20 - Q
20 -Q
20 7-Q

20 -Q

-Q
20 -Q

20 -Q

20 -Q
20 -Q

20 -Q

20 -Q

20 -Q

20 - Q
20 -Q

20 - Q

20 -Q

20 - Q
20 - Q

20 -Q
20 -Q

20 -Q
20 - Q

20 -Q

20 -Q

20 -Q

20 -Q

20 - Q

20 -Q

20 - Q

20 -Q
20 - Q

20 -Q

20 -Q

20 -Q
20 - Q
20 -Q

20 -Q
0
20

Romania (Analize Imobiliare and Imobiliare.ro)

European Union (Eurostat, EU28) Source: Analize Imobiliare, Imobiliare.ro, INS and EUROSTAT
Romania(INS)

Romanian residential market report - Q1 2018 5

THE QUARTERLY EVOLUTION OF THE
RESIDENTIAL REAL ESTATE PRICES

The price increase margin recorded in the first quarter of
2018, namely 1.4% is significantly lower than in the same
period of the last year, which reached 4%. It is worth
noting that both in 2016 and 2017, the first quarter marked
a peak in the price increases, with increases recorded in
the next three quarters of the year being lower. It remains
to be seen if this pattern will be maintained for the current
year.
According to Analize Imobiliare's data, the quarterly
average of the price variations on the residential segment
was 2.2% in 2017, down from 2.9% in 2016. It is worth
mentioning that the current rate of the housing price
increase is considerably below the one recorded in the
boom period of the market - this is when the sellers’
claims increased by 10.6% in 2007-2008 (Q2 2007) or even
16% (Q1 2008) at an interval of three months.

The current rate of the housing price increase is considerably below the one
recorded in the boom period of the market - this is when the sellers’ claims
increased by up to 16% in 2007-2008 (Q1 2008) in a single quarter.

Quarterly rate of change in prices

20

15
Average over the last 4 quarters
10

-5

-10

-15

-20
20 Q2

20 Q4
4

20 Q2

20 Q4
20 -Q3
20 Q3

20 Q3
20 Q2

20 Q4
20 -Q1
20 Q3

20 Q2
20 -Q1

20 Q4
20 Q3

20 Q2

20 Q2

4
20 Q4

20 Q2

20 Q2

20 Q4
20 Q1

20 Q3

20 Q2

20 Q3
20 Q3

20 Q3
20 Q1

20 Q2

20 Q4
20 Q3

1
20 Q1
20 Q2

20 Q3
20 Q4
20 Q1

20 Q1

20 Q1
20 Q3

20 Q1

20 Q1
20 Q1
-Q

-Q
-Q
-Q
-Q
-

-
-

-
-
-

-
-

-
-

-
-

-
-

-
-
-

-
-

-
-
-

-
-

-
08

09
08
06

07

09
08

08
06

09

09
10
07

18
12

15
14

16
07

07

10

13
10

10

12

15
14

17
16
11

12

12

13

15

15
14

14

16

16

17
13

13
11

17

17
11

11

20

20
20
20
20

Source: Analize Imobiliare and Imobiliare.ro

6 Romanian residential market report - Q1 2018

THE EVOLUTION OF PRICES IN THE COUNTY SEATS
apartments for sale/rent

7
The situation in the main cities - apartments for sale
The first quarter of 2008 was also the last quarter of
growth for the domestic residential market - before the
recession began -, which also marks the reaching of some
maximum values of the real estate put on sale. At present,
Cluj-Napoca is the only one of the regional centres
constantly monitored by Imobiliare.ro which managed to
reach (and exceed!) the price level valid ten years ago.
Thus, the average recorded in Q1 2018 in the capital of
Transilvania, namely EUR 1,480 per usable square metre, is
about 15% higher than the one achieved in Q1 2018. At the
other extreme is Bucharest, where the prices of
apartments continue to be nearly 42% lower than before
the crisis. Timișoara is also at a short distance from the
values in the boom period (with a 6.5% difference), while
the prices are 20.4% lower in Iași, 24.2% lower in Brașov
and 25.2% lower in Constanța.
In the first three months of 2018, the average amount
requested for the available-for-sale apartments increased
in all the six major cities in the country under review - but
the increases were, in most cases, lower than in the Q4
Price trends across main cities - apartments for sale
+15.2% -41.8% -6.5% -25.2%
+17.3% +5% +10% +11%
+1.3% +0.7% +2.6% +2.5%
1,480 1,260 1,150 1,100
Cluj-Napoca Bucharest Timișoara Constanța
Source: Analize Imobiliare and Imobiliare.ro
8 Romanian residential market report - Q1 2018
2017. The most significant advance, of 2.6% was recorded
in Timișoara, which reached an average of EUR 1,150 per
usable square metre. On the other hand, Bucharest
recorded the slightest price increase: here, the sellers’
claims increased by 0.7% (up to EUR 1,260 per usable
square metre).
Despite the quarterly advance of only 1.3%, Cluj-Napoca
continues to be the leader in the ranking of prices at 12
months, with an extra of 17.3% compared to the same
period in 2017. Two-digit increases have taken place other
times too in Constanța (11% up to EUR 1,100 per usable
square metre), but also in Timișoara (10%). Compared with
the first quarter in 2017, the current level of the owners’
expectations are 8.5% higher in Brașov (EUR 1,010 per
usable square metre), 6.6% higher in Iași (EUR 960 per
usable square metre) and only 5% higher in Bucharest.
These figures confirm the Capital’s slower recovery from
the recession, a phenomenon that has also affected it
most powerfully.
-24.2% -20.4% Price change over last 10 years
+8.5% +6.6% Price change over last 12 months
+1% +0.9% Price change over last 3 months
1,010 960
Median price per sq.m. (€)
Brașov Iași
The evolution of prices in the county seats - apartments for sale

Of the country’s county seats, the country’s major
regional centres are, of course, those where the most
expensive housing is available. According to Analize
Imobiliare's data, there are six cities in Romania where the
average amount requested for an apartment is over EUR
1,000 per usable square metre - Cluj-Napoca, Bucharest,
Timișoara, Constanța, Brașov and Craiova. With an average
listing value of EUR 1,080 per usable square metre, the
prices in the capital of Oltenia continue to be above the
level of those in Iași.
As for the cheapest apartments available for sale, they can
be found in the country seats in the southern area of
Romania, led by Reșița and Giurgiu, where the owners’
claims reach 470 and, namely, EUR 490 per usable square
metre. The ranking is completed by Alexandria (EUR 530
per usable square metre), Drobeta Turnu-Severin (EUR 570
per usable square metre), Târgoviște (EUR 590 per usable
square metre) and Călărași (EUR 610 per usable square
metre).
The first quarter of 2018 brought some interesting price
developments among the country’s county seats. This is,
first of all, the record growth recorded by Miercurea-Ciuc,
namely 17.8%, up to an average of EUR 820 per usable
square metre of apartment. Then, it is worth noting the
significant increases recorded by a number of other
smaller cities: 7.7% in Drobeta Turnu-Severin, 7.4% in
Suceava, 7.1% in Giurgiu, 5.8% in Călărași and 5.6% in
Slatina. On the other hand, it is worth noting that four of
the country’s largest cities are in the ranking of cities with
the lowest price variations - in this case, increases:
Bucharest (0.7%), Iași (0.9%), Brașov (1%), but also
Cluj-Napoca (1.3%).

Largest price per sq. m. +1.3% +0.7% +2.6% +2.5% +2.6%

Median price & price change over last 3 months
1,480 € 1,260 € 1,150 € 1,100 € 1,080 €
Cluj-Napoca Bucharest Timișoara Constanța Craiova

Smallest price per sq. m. +3.2% +7.1% -0.1% +7.7% +3.7%

Median price & price change over last 3 months
470 € 490 € 530 € 570 € 590€
Reșița Giurgiu Alexandria Drobeta Târgoviște
Turnu-Severin

Largest price increase per sq. m +17.8% +7.7% +7.4% +7.1% +5.8%
Median price & price change over last 3 months
820 € 570 € 780 € 490 € 610 €
Miercurea-Ciuc Drobeta Suceava Giurgiu Călărași
Turnu-Severin

Lowest price increase per sq. m -0.1% +0.7% +0.9% +1% +1.1%
Median price & price change over last 3 months
530 € 1,260 € 960 € 1,010 € 700 €
Alexandria Bucharest Iași Brașov Bistrița

Source: Analize Imobiliare and Imobiliare.ro

Romanian residential market report - Q1 2018 9

The evolution of prices over the last 10 years

Analize Imobiliare's data show that, up to now, the
western county seats have managed to best recover the
downturn recorded during the recession period.
Cluj-Napoca is at the forefront, with a 15.2% higher
average price than in the Q1 2008, namely EUR 1,280 per
usable square metre. At a short distance from the level of
the boom period, there are, however, other cities in the
western area: Oradea (with -0.7%), Timișoara (-6.5%), Arad
(-6.5%), Alba Iulia (-9.3%), but also Satu Mare (-10.5%).
On the other hand, a number of cities in the south of the
country - along with one in the north-east - have
recovered the least from the downturns caused by the
crisis. Thus, in Piatra Neamț, the apartments continue to
be 45.3% cheaper than in the boom period, with an
average listing value of EUR 670 per usable square metre
(compared to EUR 1,220 per square metre). The next place
is Bucharest, with a difference of 41.8% (from EUR 2,160
per usable square metre in the boom period to EUR 1,260
per usable square metre in the present).
The capital is followed by Târgoviște, with a minus of
39.7%, where prices are now at EUR 590 per square metre
(compared to EUR 980 per square metre). At the same
time, in Reșița, the sellers’ claims are 31.5% lower than ten
years ago (EUR 470 compared to 690 per square metre) in
Alexandria 31.2% lower (EUR 530 compared to 780 per
square metre), and in Galați 30.1% lower (EUR 810
compared to 1,150 per square metre).

Cities with the lowest and highest price decreases

Median price/ sq.m. in €

2018-Q1 2008-Q1 Evolution 2018-Q1 2008-Q1 Evolution

Cluj-Napoca 1,480 1,280 +15.2% Piatra-Neamț 670 1,220 -45.3%

Oradea 930 940 -0.7% Bucharest 1,260 2,160 -41.8%

Timișoara 1,150 1,220 -6.5% Târgoviște 590 980 -39.7%

Arad 670 720 -6.5% Reșița 470 690 -31.5%

Alba Iulia 850 940 -9.3% Alexandria 530 780 -31.2%

Satu Mare 650 720 -10.5% Galați 810 1.150 -30.1%

Source: Analize Imobiliare and Imobiliare.ro

18
10 Romanian residential market report - Q1 2018
The level of rents
The average price requested for a monthly rent for a 2-room apartment,
comfort 1, built between 1980-2000)

Drobeta Turnu-Severin 150€

Reșița 165€ Given that the first quarter of the year is traditionally
Sfântu Gheorghe 168€ characterised by a weaker activity in the housing rental
Râmnicu Vâlcea 170€
segment, the prices on this market segment did not
Slobozia 175€
recorded any major changes in Q1 2018. Further, the highest

Buzău 177€
level of rents can be found in Cluj-Napoca, with Bucharest

Deva 180€
on the second place. Thus, a 2-room apartment, comfort 1,

Piatra-Neamț 180€
built between 1980 and 2000, reaches an average of EUR

Satu Mare 180€

400 per month in the town of Someș, but it can be found

Călărași 182€
with EUR 350 per month by those who want to live in the

Zalău 188€
capital. In the last three quarters, the two major cities of the
country have maintained a constant level of prices on this
Baia Mare 190€
segment.
Suceava 190€

Vaslui 190€
The next place in the ranking of the highest rents is, on equal
Slatina 193€
level, Timișoara and Brașov, where the same type of
Bistrița 195€
apartment reaches an average of EUR 300 per month. At a
Târgu-Jiu 196€
short distance away is Iași, where a bicameral housing can
Alexandria 200€
be rented with EUR 295 per month, In Constanța, on the
Arad 200€
other hand, the owners’ claims for this category of real
Bacău 200€
estate reach EUR 250 per month.
Brăila 200€

Focșani 200€
There were some price variations in the most affordable
Oradea 200€
county seats: while the owners in Drobeta Turnu-Severin
Târgoviște 200€
maintained their claims at EUR 150 per months, those in
Galați 215€
Reșița increased them from EUR 160 to 165 per month, and
Pitești 215€
those in Sfântu Gheorghe from EUR 160 to 168 per month. In
Alba Iulia 220€
the ranking of the cities with the lowest rents is also
Botoșani 220€
Râmnicu Vâlcea, with an average of EUR 170 per month for
Craiova 220€
a 2-room apartment.
Giurgiu 220€

Constanța 250€

Ploiești 250€

Sibiu 250€

Tulcea 250€

Târgu Mureș 259€

Iași 295€

Brașov 300€

Timișoara 300€

Bucharest 350€ Source: Analize Imobiliare and Imobiliare.ro

Cluj-Napoca 400€

Romanian residential market report - Q1 2018 11

PRICE TRENDS ACROSS
NEIGHBOURHOODS

Cluj-Napoca

Bucharest

Timișoara
 Cluj-Napoca - apartments

1,480 € +1.3% +17.3%

Median price per sq. m. Price change over Price change over
last 3 months last 12 months

13
Neighbourhoods and areas in Cluj-Napoca

The average price per square metre required for the sale of
apartments in Cluj-Napoca is still the highest in the
country. The prices registered an increase of 1.3%
(reaching to EUR 1,480) in the first quarter of the year, a
slower growth compared to the previous quarter (+3.7%,
in Q4 2017). The top of the most expensive
neighbourhoods in the city did not suffer major changes,
as the prices remained relatively constant, with increases
of up to 2.1% in the Plopilor neighbourhood, area which
recorded a price increase of 7.1% in Q4 2017 (the
neighbourhood with the highest advance of price/sqm
over that time frame). The most expensive area remains in
this quarter to the central/ultracentral area (EUR 1,690 per
square metre), as expected.
The situation has not significantly changed with respect
to the average price asked for sale/sqm neither in terms of
the most affordable neighbourhoods, with one exception.
The apartments in Someșeni area entered a strong trend
of appreciation, recording a 9.1% increase, from EUR 1,090
to EUR 1,190 - a noticeable difference for buyers of 100
EUR/sqm in just 3 months. The Florești and Baciu
neighbourhoods remain in this quarter too below the
threshold of 1,000 EUR/sqm.
Besides Someșeni, the Gruia, Dâmbul Rotund, Gara and
Bulgaria neighbourhoods are also on an upward trend in
the price appreciation, with a price that reached at 1,400
EUR/sqm in the first quarter of this year (a 3.4% increase
over the previous quarter). For the first time, after at least
4 quarters of positive evolutions, Cluj-Napoca registered
in Q1 2018 the first price drop of 1.3% in Zorilor
neighbourhood, one of the most expensive in the city.
Thus, the average price required here comes down from
1,570 EUR/sqm (in Q4 2017) to 1,500 EUR/sqm (in T1 2018).

850 EUR per square metre is the price difference between the most expensive
area in Cluj - Central/Ultracentral (1,690 EUR per square metre) - and
the cheapest – Florești (840 EUR per square metre).

Neighborhoods with the largest price per sq. m.

Median price & price change over last 3 months

+0.1% +2.1% +1.7% -1.3% +1.5%

1,690€ 1,660€ 1,570€ 1,550€ 1,520€

Central Plopilor Gheorgheni Zorilor Mărăști
Ultracentral Andrei Mureșanu Între Lacuri
Aurel Vlaicu
Source: Analize Imobiliare and Imobiliare.ro

14 Romanian residential market report - Q1 2018

Neighbourhoods with the Neighbourhoods with the
largest price increase per sq. m. smallest price increase per sq. m.
Median price & price change over last 3 months Median price & price change over last 3 months

Someșeni 1,190€ / +9.1% Zorilor 1,550€ / -1.3%

Gruia Central
Dâmbul Rotund 1,690€ / +0.1%
Ultracentral
Gara 1,400€ / +3.4%
Bulgaria
Florești 840€ / +0.5%
Plopilor 1,660€ / +2.1%
Baciu 980€ / +0.8%

Mănăștur
Borhanci 1,400€ / +2.1% Bună Ziua
Câmpului Europa 1,360€ / +1%
Calea Turzii

Iris 1,280€ / +2%

Neighbourhoods with the

smallest price per sq. m.
Median price & price change over last 3 months

Florești 840€ / +0.5%

Baciu 980€ / +0.8%

Someșeni 1,190€ / +9.1%

Iris 1,280€ / +2%

Bună Ziua
Europa 1,360€ / +1%
Source: Analize Imobiliare and Imobiliare.ro
Calea Turzii

Romanian residential market report - Q1 2018 15

 Bucharest - apartments

1,260 € +0.7% +5%

Median price per sq. m. Price change over Price change over
last 3 months last 12 months

16
Neighbourhoods and areas in Bucharest
In the first three months of this year, the neighbourhoods
in the central and semi-central areas recorded the most
significant increases, with evolutions between 3.8% and
5.7%, slightly higher than in the last quarter of the last year.
The higher advance, of 5.7%, took place in Ferdinand area,
with Griviței neighbourhood on the second place in the
top of the price rises (where housing appreciated by 4.7%),
followed by Victoriei, Romană and Universitate areas (with
a plus of 4.3%), Berceni neighbourhood (by 3.9%) and
Cotroceni neighbourhood (with an advance of 3.8%).
After four quarters in a row, the top of the most expensive
neighbourhoods in the Capital suffered a small change:
Unirii area is replaced by the Cotroceni neighbourhood,
ranking 5th in the top, in Q1 2018. In the last three
quarters, this neighbourhood registered significant price
increases from 12.8% in Q3 2017, to 3.8% in Q1 2018,
reaching a price per square metre of EUR 1,680 (from EUR
1,450 in Q2 2017). At the same time, the most expensive
area in Bucharest, Kiseleff-Aviatorilor, retakes
appreciation, the average price asked reaching EUR 2,560
– an increase of EUR 70 per square metre (+2,8%)
compared to the previous quarter, when it recorded a
decrease of 4.3% (EUR 2,490 per square metre in Q4 2017).
The only area on this top that enters a slightly downward
trend in the evolution of prices is Dorobanți-Floreasca,
Neighbourhoods with the largest price per sq. m.
Median price & price change over last 3 months
+2.8% +0.9% -0.3%
2,560 € 2,490 € 1,990 €
Kiseleff Herăstrău Dorobanți
Aviatorilor Nordului Floreasca
Romanian residential market report - Q1 2018
with -0.3%, falling slightly below the threshold of EUR
2,000 per square metre where it was a quarter ago.
Of the 3 cities analysed, Bucharest is the only one to
register negative evolutions in some neighbourhoods
each quarter. Being at the second quarter in a row on a
negative evolution, Giulești neighbourhood reached a
price per square metre of EUR 950, after reaching the level
of EUR 1,000 per square metre in Q3 2017. Another
example of an interesting evolution of the average price
per square metre is the Dacia-Eminescu area, which
although registered a slight decrease of 1.2% in the first
quarter of this year, it reaches 1,550 EUR/square metre,
with EUR 180 per square metre in excess compared to the
same period of the last year (1,3710 EUR per square
metres, in Q1 2017).
In terms of the most affordable neighbourhoods in the
Capital, with prices below the threshold of EUR 1,000 per
its square metre, Ghencea is ranked first in the top, with a
price of EUR 910 (1.5% up compared to the previous
quarter), followed by Rahova, with a price of EUR 940 and
Giulești, with a price of EUR 950. In the first quarter of this
year, the apartments in Giurgiului neighbourhood
appreciate by 2.3% and reach the threshold of 1,000 EUR
per square metre.
+2.8% +3.8%
1,840 € 1,680€
Aviației Unirii
Source: Analize Imobiliare and Imobiliare.ro
17
Neighbourhoods with the Neighbourhoods with price drops
largest price increase per sq. m. per sq. m.
Median price & price change over last 3 months Median price & price change over last 3 months

Ferdinand 1,570€ / +4.4% Giulești 950€ / -3.6%

Griviței
1,420€ / +4.1% Dacia-Eminescu 1,550€ / -1.2%
Gara de Nord

Băneasa 1,570€ / -0.9%

Victoriei
Romană 1,520€ / +3%
Parcul Carol
Universitate 1,480€ / -0.8%
(Cantemir-Mărășești)

Berceni 2,470€ / +4%

13 Septembrie-Panduri 1,200€ / -0.7%

Cotroceni 1,160€ / +3.4%

Neighbourhoods with the

smallest price per sq. m.
Median price & price change over last 3 months

Ghencea 910€ / +1.5%

Rahova 940€ / +3.1%

Giulești 950€ / -3.6%

Giurgiului 1,000€ / +2.3%

Drumul Taberei 1,040€ / +0.7% Source: Analize Imobiliare and Imobiliare.ro

18 Romanian residential market report - Q1 2018

The evolution of sale prices for apartments in the last 10 years

According to Analize Imobiliare's data, the Capital still has
much to recover in terms of average price per square
metre compared to the average price of 2008, just before
the crisis was installed in Romania. In the first quarter of
this year, our data reported an average level of the price of
EUR 1,260 per square metre, EUR 900 (-41.8%) cheaper
than 10 years ago. At neighbourhood level, the price
declining percentages in the last 10 years differ, from -6.6%
(Kiseleff- Aviatorilor) to -48.1% (Drumul Taberei). There is a
very clear trend: the most expensive neighbourhoods in
the Capital are much closer to the prices recorded in 2008,
while the cheapest neighbourhoods still have to recover
between 45.9% and 48.1% of the price.
The apartments in the most expensive neighbourhood in
Bucharest, Kiseleff-Aviatorilor, are only 180 EUR per square
metre cheaper than in 2008, recovering the most of the
price lost in the crisis. If a housing in Herăstrău-Nordului
area could be purchased in 2008 at an average price of
3,210 EUR per square metre, today it can be purchased
with 2,490 EUR per square metre, with EUR 720 less. Other
notable price differences in the top of the neighbourhoods
with the lowest decreases are of 830 EUR per square
metre in Dorobanți-Floreasca, 580 EUR per square metre
in Pipera, and 910 EUR per square metre in Aviației
neighbourhood.
The neighbourhoods with the highest decreases in the
average prices per square metre compared to 2008 are
also among the most affordable neighbourhoods in the
Capital. The apartments in Drumul Taberei, Rahova,
Berceni, Giurgiului and Titan neighbourhoods are, on
average, 926 EUR per square metre cheaper than 10 years
ago.

Neighbourhoods with the lowest and highest price decreases

Median price/ sq.m. in €

2018-Q1 2008-Q1 Evolution 2018-Q1 2008-Q1 Evolution

Kiseleff- Aviatorilor 2,560 2,740 -6.6% Drumul Taberei 1,040 2,000 -48.1%

Herăstrău-Nordului 2,490 3,210 -22.5% Rahova 940 1,810 -47.8%

Dorobanți-Floresca 1,990 2,820 -29.3% Berceni 1,050 2,000 -47.3%

Pipera 1,240 1,820 -32.1% Giurgiului 1,000 1,890 -47.2%

Aviației 1,840 2,750 -33.2% Titan 1,140 2,100 -45.9%

Source: Analize Imobiliare and Imobiliare.ro

Romanian residential market report - Q1 2018 19

 Timișoara - apartments

1,150 € +2.6% +10%

Median price per sq. m. Price change over Price change over
last 3 months last 12 months

20
 Neighbourhoods and areas in Timișoara

In the last year, the apartments in Timișoara
neighbourhoods appreciated, on average, by 10%. The first
quarter of this year also brought a 2.6% increase in prices,
being the highest advance among the major regional
centres analysed. Unlike Cluj-Napoca and Bucharest,
where there have been neighbourhoods that have also
recorded price declines, the prices in the capital of Banat
have had a positive evolution in all neighbourhoods,
between +0.4% and +7.5%.
The top of the most expensive neighbourhoods have
undergone major changes in the past three months. Thus,
the neighbourhoods ranked quite well,
Circumvalațiunii, Lipovei and Aradului came out of the
top. They were replaced by neighbourhoods that reach in
the first quarter of the year the threshold of 1,200 EUR per
square metre, as average price asked for apartments:
Torontalului (after an appreciation of 7.5%) and Braytim
(after an appreciation of 7.4%). Interesting to note is the
alignment of the average prices per square metre of the
neighbourhoods in this top to the level of EUR 1,200, after
an appreciation of 4% and 4.2% Complex Studențesc,
Dacia, Elisabetin, Olimpia-Stadion, respectively Central
area, Bălcescu, Take Ionescu and P-ța Maria.
As we have already been accustomed to, there are no
great differences in the price per square metre between
the Timișoara neighbourhoods, the apartments oscillating
between 1,090 EUR per square metres in the most
affordable areas such as Bucovina - Simion Bărnuțiu -
like Gării – Dorobanților or Mircea cel Bătrân and 1,200 EUR
per square metre in the central areas. The only exception
is in the apartments in the ultracentral area, Medicină and
Piața Unirii, where the price asked per square metre has
reached an average of EUR 1,470, after an evolution of +4%
in the last three months.

380 EUR per square metre is the price difference between the most
expensive area - 1,470 EUR per square metre - and the cheapest area in
Timișoara - 1,090 EUR per square metre.

Neighbourhoods with the largest price per sq. m.

Median price & price change over last 3 months

+4% +7.5% +4% +4.2% +7.4%

1,470€ 1,200€ 1,200€ 1,200€ 1,200€

Ultracentral Torontalului Complex Central Braytim
Medicină Studențesc Bălcescu
P-ța Unirii Dacia Take Ionescu
Elisabetin P-ța Maria
Olimpia-Stadion

Source: Analize Imobiliare and Imobiliare.ro

Romanian residential market report - Q1 2018 21

Neighbourhoods with the Neighbourhoods with the
largest price increase per sq. m. smallest price increase per sq. m.
Median price & price change over last 3 months Median price & price change over last 3 months

Torontalului 1,200 € / +7.5% Girocului

Soarelui 1,120€ / +0.4%
Buziașului
Braytim 1,200€ / +7.4%

Șagului
Central
Dâmbovița
Bălcescu
1,200€ / +4.2% 1,110€ / +1.1%
Iosefin
Take Ionescu
Steaua
P-ța Maria

Circumvalațiunii 1,170 € / +1.2%

Complex Studențesc
Dacia
Elisabetin 1,200 € / +4% Bucovina
Olimpia Simion Bărnuțiu
Stadion Gării 1,090€ / +2.7%
Dorobanților
Mircea cel Bătrân
Ultracentral
Medicină 1,470€ / +4%
P-ța Unirii Lipovei - Aradului 1,160 € / +3.3%

Neighbourhoods with the

smallest price per sq. m.
Median price & price change over last 3 months

Bucovina
Simion Bărnuțiu
Gării 1,090€ / +2.7%
Dorobanților
Mircea cel Bătrân

Șagului
Dâmbovița
1,110€ / +1.1%
Iosefin
Steaua

Girocului
Soarelui 1,120€ / +0.4%
Buziașului

Lipovei - Aradului 1,160 € / +3.3%

Circumvalațiunii 1,170 € / +1.2% Source: Analize Imobiliare and Imobiliare.ro

22 Romanian residential market report - Q1 2018

THE DEMAND FOR APARTMENTS AND HOUSES FOR SALE
Over the past 12 months, the demand for residential real
estate (both apartments, and houses) has increased
cumulatively by 17% at the level of the largest six cities in
the country. Increases have been recorded in all of these
regional centres, but their magnitude is very different: the
top of the list is Iași and Cluj-Napoca, where the appetite
for housing purchases is 49% and, namely, 41% higher
than in the same period of the last year.
On the other hand, Bucharest recorded the slightest
increase in demand for residential real estate, i.e. 6%
(which partly explains the more moderate rises in the
Capital). It should also be taken in account that the
volume of demand in the so-called secondary cities is four
to five times lower than in Bucharest. In the other major
cities of the country, the appetite for housing purchases
has two-digit annual increases: 12% in Constanța, 28% in
Timișoara and, namely 34% in Brașov, according to Analize
Imobiliare's data.
The demand for residential properties for sale
Apartments and houses - new and old
103,100 25,600 20,300 20,000
Bucharest Timișoara Constanța Cluj-Napoca
+46% +104% +103% +76%
+6% +28% +12% +41%
Romanian residential market report - Q1 2018
In the last three years (a period that largely corresponds to
the new growth cycle of the market that began after the
crisis), the housing demand increased by 76% in the six
major cities, so it is now at an apogee point. The most
significant advance of 217% took place in Iași. Despite the
fact that the buyers’ interest tripled practically during the
mentioned period, the prices in the capital of Moldova did
not feel a very high pressure, as the increasing offer of
new apartments could take up a good part of the new
demands. Increases of more than 100% of the demand
were also recorded in Brașov (158%), Timișoara (104%) and
Constanța (103%), while in Bucharest and Cluj-Napoca
there was an increase of 46% and, namely, 76%.
Over the last three years, the housing
demand has increased by 76% in the
six major cities.
Source: Analize Imobiliare
and Imobiliare.ro
19,200 18,100
Brașov Iași
+158% +217% Evolution over last 3 months %
+34% +49% Evolution over last 12 months %
23
Apartments and houses
new vs. old

As regards the type of housing sought by the potential
buyers, the newly built ones (apartments and houses
completed after 2000) are still majority, with a share of
57% of searches in the six major cities (rising from 56% in
the last quarter of 2017). The preference for the new
housing units can only be found in three of the six
analysed cities: namely Cluj-Napoca (69%), Iași (67%) and
Bucharest (62%). In the other three regional centres, the
old apartments are still more popular, with a 46% share in
Timișoara, 43% in Constanța and, namely 42% in Brașov.

Demand for new vs old properties in 2018-Q1

46% 43% 42%

69% 67% 62%

54% 57% 58%

31% 33% 38% The demand for new properties
The demand for old properties
Iași
Cluj-Napoca Cluj-Napoca
Iași București
Bucharest Timișoara
Timișoara Constanța
Constanța Brașov

Source: Analize Imobiliare and Imobiliare.ro

24 Romanian residential market report - Q1 2018

 THE NUMBER OF LISTINGS FOR SALE
IN MAJOR CITIES

In the offer chapter, Analize Imobiliare's data shows that
the number of the residential real estate (apartments and
houses) available for sale in the six regional centres
analysed increased, overall, by 22% compared to the
previous quarter. The highest increase in this respect took
place in Brașov (33.3%), the next places being Constanța
(with an extra of 27.8%), Cluj-Napoca (27.4%), Timișoara
(24.6%), Bucharest (18.1%) and Iași (16.1%).
As far as the properties newly introduced on the market
are concerned, there was an increase in the major cities of
16.4% compared to the first quarter of 2017, the upward
trend being felt in each of the six regional centres. The
largest advance was in Constanța (33.5%), the seaside city
being followed by Cluj-Napoca (33%), Iași (24.7%),
Timișoara (21.9%), Brașov (16,8%) and, in the end, by
Bucharest (6.2%).

But, compared to the same period of the last year, the
number of real estate available for sale declined by 5.9% at
the level of the major cities, amid growing demand and
the number of transactions in the market. Five of the six
regional centres have seen declines in this indicator over
the last year - led by Bucharest, with a minus of 12.3%. The
exception to the rule is Cluj-Napoca, where the number of
housing offers for sale is 8.6% higher than 12 months ago.
Compared to the last quarter of the last year, the number
of new advertisements on the market has seen an even
more significant advance, namely 34.5% at the level of the
major regional centres. And from this point of view, the
analysed cities recorded increases on the line: the top of
the list is again Constanța, with an extra of 47.7%, and the
following positions are Timișoara (with 40.1%), Brașov
(39.5%), Cluj-Napoca (37.7%), Bucharest (32.7%) and Iași
(16.7%).

7,280 Number of listings - for sale

Apartments and houses built before the year 2000

New listings
3,880
All listings for sale
2,620
2,060
1,520
1,050 1,210 1,140 1,140
710 680 650

Bucharest Cluj-Napoca Timișoara Iași Constanța Brașov

Change over +32.7% +37.7% +40.1% +16.7% +47.7% +39.5% New listings
last 3 months
+18.1% +27.4% +24.6% +16.1% +27.8% +33.3% All listings for sale

Change over
+6.2% +33% +21.9% +24.7% +33.5% +16.8% New listings
last 12 months
-12.3% -8.6% -0.8% -0.2% -4.8% -6.2% All listings for sale

Source: Analize Imobiliare and Imobiliare.ro

Romanian residential market report - Q1 2018 25

 THE NUMBER OF LISTINGS FOR RENT
IN MAJOR CITIES

In the first quarter of 2018, in the major cities of the
country, there were more apartments and houses
available for rent than for sale, namely 17,040 housing
units, compared to 15,460. Of course, among the major
cities analysed, the most rental offers are in Bucharest
(9,020 units), and the fewest in Brașov (1,010). Last quarter,
the number of the housing for rent newly introduced on
the market was 12,500 units, most of them in Bucharest.
The total offer of housing available for rent increased by
19.1% in Q1 2018 compared to the previous three months,
with the highest increases taking place in Timișoara (39.7%
up to 2,140 properties) and Brașov (37.4% up to 1,010 units).
But, compared to the same period of the last year, a
cumulative increase of 15.9% can be observed. Timișoara
is leading in this case too in the top of rises (by 38.5%),
followed by Cluj-Napoca (by 34.7%). Bucharest, on the
other hand, is distinguished by the lowest supplement of
the rental offer, namely 6.8%.
As for the rental advertisements newly introduced on the
market, an increase of 21.5% compared to the last three
months of 2017 was recorded in the six academic centres
analysed. The trend was an upward one in most of these
markets, the most significant advance taking place in
Timișoara (49.3%), and the lowest in Bucharest (16.8%).
One city is an exception to this trend, namely Constanța-
where the newly introduced properties for rent for rent are
1.5% less.
Compared to the same period of 2017, the number of new
advertisements was 21.7% higher in Q1 2018. This time,
the growth trend was a general one, being felt in all the
analysed cities, starting with Timișoara (56.8%) and
continuing with Cluj-Napoca (33.1%), Brașov (31.5%),
Constanța (23.5%), Bucharest (12.9%) and Iași (12.8%).

9,020 Number of listings - for rent

Apartments and houses built before the year 2000

6,520

New listings
All listings for rent

2,420
2,140
1,860
1,620
1,300 1,140
990 790 1,010
720

Bucharest Cluj-Napoca Timișoara Iasi Constanța Brașov

Change over +16.8% +25.9% +49.3% +19.2% -1.5% +35.7% New listings
last 3 months
+14% +24.9% +39.7% +8.4% +15.8% +37.4% All listings for rent

Change over +12.9% +33.1% +56.8% +12.8% +23.5% +31.5% New listings
last 12 months
+6.8% +34.7% +38.5% +9% +24.8% +26.3% All listings for rent

Source: Analize Imobiliare and Imobiliare.ro

26 Romanian residential market report - Q1 2018

ANCPI TRANSACTIONS

According to the data published by the National Agency for Cadastre and Land 3,615 Caraș Severin

Registration (ANCPI), a number of 627,802 sales of real estate were registered 3,920 Sălaj
4,470 Teleorman
throughout the year 2017 at national level. During this period, most of these
4,529 Covasna
operations were carried out in Bucharest (82,477 transactions), on the following
4,698 Gorj
places in the ranking being the counties of Cluj (43,774 contracts), Ilfov (41,687), Timiș
5,689 Tulcea
(35,068), Iași (31,357), Brașov (28,406) and Constanța (27,843). On the other hand, the
5,905 Mehedinți
counties with the weakest trading activity, with less than 5,000 sales recorded over
6,223 Vâlcea
12 months are: Caraș-Severin (3,615 transactions), Sălaj (3,920), Teleorman (4,470), 7,011 Ialomița
Covasna (4,529) and Gorj (4,698). 7,021 Olt
7,401 Vaslui

148,951 real estates were traded nationwide in the first quarter of 2018, equivalent to 7,413 Harghita

a 13% increase compared to the same period of the last year (129,357 transactions 7,473 Giurgiu
7,734 Călărași
were recorded in Q1 2017). In all six counties of the largest cities in the country, the
7,998 Bistrița Năsăud
trend was an increasing one in relation to the beginning of the last year. But,
8,770 Hunedoara
compared to the previous quarter, the number of transactions declined in all cases -
8,863 Brăila
a natural trend, however, given the cyclicality of the real estate market.
8,985 Maramureș
9,548 Alba
19,333 real estate units were sold in Bucharest in Q1 2018, up by 30% compared to the 9,623 Vrancea
same period of the previous year (when 14,896 units were traded). Important 9,843 Mureș

increases also occurred in Ilfov (+69% from 5,814 to 9,829 transactions), Brașov (+36%, 10,057 Sibiu

from 4,977 to 6,750 units), but also in Timiș (+29%, from 6,758 to 8,685 purchases). In 10,992 Satu Mare
11,053 Botoșani
Cluj, on the other hand, the increase at 12 months was significantly lower, namely 9%
11,183 Neamț
(from 8,763 to 9,543 transactions).
11,679 Buzău
12,470 Bacău
12,529 Dâmbovița
13,088 Galați
14,679 Argeș
148,951 real estate units were traded nationwide in the
15,644 Dolj
first quarter of 2018, equivalent to a 13% increase com-
15,717 Bihor
pared to the same period of the last year (129,357 real
16,539 Prahova
estate transactions were recorded in Q1 2017).
16,716 Arad
18,112 Suceava
27,843 Constanța
28,406 Brașov
31,357 Iași
35,068 Timiș

Source: ANCPI, year 2017 41,687 Ilfov

43,774 Cluj
82,477 Bucharest

Romanian residential market report - Q1 2018 27

 Quarterly evolution of transactions
In main counties

30,000

25,000

20,000

15,000

10,000

5,000

Bucharest Cluj Ilfov Timiș Iași Brașov Constanța

2017-Q1 2017-Q2 2017-Q3 2017-Q4 2018-Q1 Source: ANCPI

In terms of types of real estate units purchased in 2017, each county has its own specificity. In the Capital, most transactions,
namely almost 39,000, targeted individual units, while the purchases of lands within the built-up area without construction
and those of lands within the built-up area with construction were at very close levels - 22,335 purchases, compared to
21,156. In Ilfov, on the other hand, the most numerous are the purchases of lands without construction (25,738), which
illustrates the increased appetite for the development of new projects around the Capital. In Cluj and Timiș, the purchases
of individual units and lands (by category) are at very close levels. In terms of agricultural lands, most sales were made last
year in Timiș (8,866), Arad (7,670) and Dolj (7,373).

Transactions by types of real estate units

in main counties, in 2017

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

Bucharest Cluj Ilfov Timiș Iași Brașov Constanța Suceava Arad Prahova

Lands within the built-up area with construction Lands outside the built-up area - agricultural Lands outside the built-up area - non-agricultural
Lands within the built-up area without construction Individual units
Source: ANCPI

28 Romanian residential market report - Q1 2018

 TIME ON MARKET IN BUCHAREST

Between January and March 2018, the time required to
sell an apartment recorded a slight increase compared to
the previous three months, from 81 to 87 days. This trend
can be explained by the cyclicality of the residential
market, given that, as the evolution of this indicator over
the past three years shows, the real estate spend most of
the time in the market in the first quarter. Compared to Q1
2017, when trading an apartment was taking, on average,
105 days, this type of housing had a shorter sale time in
the beginning of 2018.
From 2014 onwards, a trend of increase of the sale period
for residential real estate can be observed as a whole -
from two to three months in the case of apartments and
from four to eight months in the case of villas. However, in
view of the large number of high demand, in contrast to
the low offer, the sale period would be expected to
decline. Generally speaking, the reasons for the growth
would be, on the one hand, the trend to postpone the
purchase decisions (in some cases, because of the
volatility of the First House (Prima Casă) segment, and, on
the other hand, the unsolvable offer on the market -
namely the real estate the owners want to sell at a price
that is higher than their market value.
In the segment of houses and villas, the average sale
period increased significantly, from 198 days in the last
quarter of 2017 to 229 days in the first three months of
2018. If should be noted that this was the highest level
achieved in the last four years - in Q1 2014, for example, an
individual housing unit was sold in 105 days. The
tendency of increasing the trading time of a house can be
explained by the concentration of a good portion of the
demand on the segment of apartments, but also by the
tendency of buyers to spend more time in making a
purchase decision - given the higher prices and the
generally lower demand specific to this market segment.

From 2014 onwards, a tendency of increasing the sale period for the
residential real estate can be seen as a whole - from 2 to 3 months in
the case of apartments and from 4 to 8 months in the case of villas.

Time on market in Bucharest (average no. of days)

250

200

150

100

50

2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2 2017-Q3 2017-Q4 2018-Q1

Apartments
Houses
Source: Analize Imobiliare and Imobiliare.ro

Romanian residential market report - Q1 2018 29

NEGOTIATION MARGIN

Although there have been price variations, the negotiation
margin for apartments traded in the major cities of the
country remain, as in the previous quarters, below the 4%
threshold (this is the difference between the last price
requested by the owners and the final one for sale). This
indicates a relative stability of the relationship between
sellers, on the one hand, and buyers, on the one hand.
Compared to the first quarter of 2017, the statistical data
generated by Analize Imobiliare reveals that, in the first
three months of 2018, the negotiation average margin
practiced on the segment of apartments declined in three
of the six major cities analysed, but increased in other two
and remained constant in one case. Thus, the sellers in
Brașov are open the lower the price now by the price now
2.7% (compared to 3.6% 12 months ago), while those in
Cluj-Napoca reduce their claims by 3.3% (compared to
3.7% 12 months ago), and those in Iași by 1.5% (from 2.1%).
While for the apartments in Bucharest it is at the same
level as one year ago (at 3.5%), this indicator increased in
Constanța (from 2.9% to 3.4%) and, namely, Timișoara
(from 1.9% to 2.6%).

The small change in the negotiation margin, from quarter to quarter, indi-
cates a relative stability of the relationship between sellers, on the one hand,
and buyers, on the other hand.

Negociation margin - Apartments for sale in main cities

2017 - Q4

3.7% 2018 - Q1
3.6%
3.5% 3.5% 3.4%
3.3%
2.9%
2.7% 2.6%

2.1%
1.9%

1.5%

Bucharest Constanța Cluj-Napoca Brașov Timișoara Iași

Source: Analize Imobiliare and Imobiliare.ro

30 Romanian residential market report - Q1 2018

CONSTRUCTION OF NEW DWELLINGS (INS)

In terms of housing construction, the latest data published
by the National Institute of Statistics (INS) shows that only
13,929 housing units were completed in the last quarter of
2017, a figure that marks a decline compared to the
previous quarter (when 16,315 housing units were
delivered) and compared to the same period of the last
year (when 15,249 units were delivered). Given that, in the
previous years, the last quarter of the year brought an
increase of about 20% in the volume of deliveries, this
decrease was certainly unexpected.
The poor results recorded in Q4 2017 caused the deliveries
to reach only 53,301 housing units throughout the year
2017 (a mere 2% increase consisting of 1,095 units,
compared to the previous year) - despite the fact that the
estimates of the players on the market aimed at reaching
a volume of 60,000 units, very close to 2008 (about 64,000
housing units) and 2009 (62,000). The under-expected
increase in the volume of completed housing has to do
with the volatility of the market segment supported by the
First House (Prima Casă) program, but also with the delays
experienced by developers in housing delivery. Despite
this evolution, the new residential constructions are far
below potential and demand.

Only 13,929 housing units were completed in the last quarter of 2017,
a figure that marks a decline compared to the previous quarter
(when 16,315 housing units were delivered) and compared to the same
period of the last year (when 15,249 housing units were delivered).

Construction of new dwellings

30,000

25,000

20,000

15,000

10,000

5,000

0
20 Q4

20 Q4

4
20 Q4
20 Q4

20 Q4

4
20 Q4
4
20 Q4

20 Q4

20 Q1

20 Q3

20 Q1
20 Q2

20 Q1
20 Q1

20 Q3

20 Q1

20 Q1

20 Q1
20 Q1

20 Q1

20 Q3
20 Q3

20 Q2

20 Q3
20 Q3

20 Q3
20 Q1

20 Q1

20 Q3

20 Q2

20 Q3

20 Q2
2

20 Q2
20 Q2

20 Q2
20 -Q3

20 Q3
20 Q2

20 Q2

-Q
-Q
-Q

-Q

-Q

-Q
-

-
-

-
-

-
-

-
-

-
-
-

-
-

-
-

-
-

-
-

-
-

-
-

-
-

-
-

11

13

17
12

14

15

16
07

10
08

09

11
11

13

17
13
12

14

17
12

14

15
15

16
07

10

16
10
08

09
07

11
06

13
08

09

17
12

14

15

16
07

10
08

09

20
20

20

20
20
20

Source: INS

Romanian residential market report - Q1 2018 31

 Housing built in Romania by region in
2016-Q1 - 2017-Q1 period

In the last three months of the last year, most of the
country’s development regions experienced declines in
the volume of completed housing. The highest decline
occurred in the South-East region (-34.4%, from 2,186 to
1,433 units), followed by the Centre region (-30.5%, from
2,453 to 1,704 units), the North-West (-22.4%, from 3,208
to 2,489 units), the West region (-19.6%, from 1,755 to 1,411
units), Bucharest-Ilfov (-15.7%, from 2,484 to 2,094 units)
and finally by Oltenia (-2.8%, from 643 to 625 de units).
The only area where there were more housing units
completed in Q4 2017 than in the previous quarter are
South-Muntenia, with an extra of 25.2% (from 1,378 to
1,725 units) and the North-East region, with an advance of
10.9% (from 2,208 to 2,448 units). In terms of the latest
statistical data, the Bucharest-Ilfov region is ranked third in
the ranking of the most prolific areas for housing
construction, being surpassed by the North-West area and
the North-East area.

Throughout 2017, the deliveries reached only 53,301 housing units (a mere 2% increase
consisting of 1,095 units, compared to the previous year).

Number of units built by region

3,500

3,000

2,500

2,000

1,500

1,000

500

0
South-West West South-East Center South-Muntenia Bucharest-Ilfov North-East North-West
Oltenia

2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2 2017-Q3 2017-Q4

Source: INS

32 Romanian residential market report - Q1 2018

 RESIDENTIAL PROJECTS IN BUCHAREST

According to the data of our latest real estate market
survey, a total of 641 residential complexes with housing
units available for sale were in Bucharest and the
surrounding in the first quarter of 2018 (only those with a
minimum of 30 planned housing units were taken into
account). Most of the projects in the Capital area, namely
506, are made exclusively of apartments, this type of real
estate being the most sought due to the more affordable
price. The complexes of houses and villas are 125, and the
mixed ones (individual housing and apartments) are 10.
In terms of distribution by cities and towns, most of the
residential projects, namely 429, are located within the
Capital - of which, 405 consist only of apartments, 23 only
of houses and only one is mixed. The next five towns in
the ranking cumulates other 151 residential complexes,
each having around 30 such projects: Bragadiru (33
complexes), Popești Leordeni (31), Voluntari (31), Chiajna
(30) and Otopeni (27). In the neighbouring towns of the
Capital, the number of residential complexes of houses is,
in most cases, very close to or even higher than that of
apartments.

ALL PROJECTS
AVAILABLE FOR SALE

CORBEANCA
Houses 13 Apartments 506
Apartments & Houses 10
Houses 125
OTOPENI Residential projects 641
Apartments 10
Apartments & Houses 1
Houses 16
Residential projects 27

VOLUNTARI
Apartments 14
Apartments & Houses 1
Houses 16
Residential projects 31

DOBROEȘTI
Apartments 5
Houses 4
CHIAJNA Residential projects 9
Apartments 19
Apartments & Houses 1 PANTELIMON
Houses 10 Apartments 5
Residential projects 30 Houses 2
BUCHAREST Residential projects 7
Apartments 405
Apartments & Houses 1
House 23
5
Residential projects 429
2
7
BRAGADIRU
Apartments 15
Apartments & Houses 2 Source: Analize Imobiliare
Houses 16 POPEȘTI-LEORDENI
and Imobiliare.ro
Residential projects 33 Apartments 21
Apartments & Houses 3
MĂGURELE Houses 7
Apartments 7 Residential projects 31
Apartments & Houses 1
Houses 1 33
Residential projects 9
ABOUT US

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34 Romanian residential market report - Q1 2018

Contact
our team of experts

DOREL NIȚĂ
HEAD OF DATA & RESEARCH

+40 748.882.892
dorel.nita@analizeimobiliare.ro

ANDREEA POPA
SALES MANAGER

+40 748.882.826
vanzari@analizeimobiliare.ro

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