Approximately 60% of potential buyers are looking for newly built apartments and demand will continue to remain relatively stable if it does not grow. The market is currently at the stage where the eligible demand is relatively close to the offer. The total sales level is roughly comparable to 2007, before the outbreak of the financial crisis. Presently, the pre-sale level before starting construction works ranges from 20 to 40%.
Most homes available for sale (54%, almost 3,050 units) belong to the lower middle segment, with about 1,140 euro/ sqm net and 19% of the available apartments belong to the low-end market segment, with approximately 930 euro / sq m net. Another 25% of homes are in the upper segment, with about 1,400 euro/sqm net. Only 2% of the bid belongs to the top segment, according to a study by the AlphaBeta digital agency.
“In the past 18 months, for the first time since the previous boom (2007-2008), many projects sold off the plan, usually up to 20% of the dwellings before the start of the construction, and in some cases even more much,” says Alexandru Boghiu, CEO AlphaBeta.
Most homes are being put up for sale in Sector 6 (over 1,500), and the lowest numbers are in Sector 5 (less than 250 units). However, these figures are on the rise in all sectors, but the statistics are not yet up-to-date. Also, the highest average prices appear in Sectors 2 and 3, with 1,307 euro/sqm and 1,308 euro/sqm, respectively.
“In this picture, the Center and North-Center areas are somewhat separate, where the average price is higher, ranging from about 1,400 euro/sqm to 2,200 euro/sqm, being considered as premium-high areas, where the expectations of the sellers, buyers are superior to other areas of the city,” says Boghiu.
Although there is an ascending trend of construction in all sectors, there is also a decrease in the population’s interest in the purchase of new homes. Whether the political climate or the interest / conditions imposed by the banks have led to this situation in the market.