Findings:
Apartment prices are rising significantly across Romania, with a national average increase of 11.4% year-on-year.
Cluj-Napoca is the most expensive city (2960 euro/sqm for new apartments), followed by Brașov and Timișoara. Iași remains the most affordable major city.
Timișoara saw the fastest monthly price growth (4%), while Sibiu has the highest annual growth rate (18.7%).
New apartments are generally more expensive than old ones, except in Iași. However, price increases are faster for older apartments.
Oradea leads price growth in medium-sized cities (17.2% annually). Ploiești has the lowest prices and slowest growth.
Key Takeaway:
Demand for apartments continues to outstrip supply, pushing prices upwards across Romania.
Trend:
Apartment prices are expected to keep rising in 2024, but the pace may slow slightly.
Conclusions:
Strong buyer demand and limited supply are the main drivers of price increases.
Rising construction costs are putting additional upward pressure on prices.
Relatively low mortgage interest rates are fueling demand.
Implications for Brands:
Real estate developers: Focus on building more apartments to meet demand.
Construction material suppliers: Continued high demand for materials is expected.
Mortgage lenders: Opportunity to attract new customers with competitive rates.
Home improvement retailers: Potential for increased sales as people invest in their existing apartments.
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