Only 13% of the 9.1 million Romanian residences were built in the last 30 years, says real estate report

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Approximately 1.22 million new residencies were built in Romania between 1990 and 2019, representing only 13.4% of the total dwellings stock calculated by the National Institute of Statistics, so the residential stock is mainly composed of apartments built under the communist regime, having a low degree of comfort in most cases, according to an analysis conducted by Cushman & Wakefield Echinox real estate consulting company.

In only three counties the share of residences built in the last 30 years exceeds the 20% threshold – Constanța (22.1%), Cluj (22%) and Suceava (21.4%), at the opposite pole being Teleorman (5,6%), Hunedoara (5.6%) and Caraş-Severin (4.1%), where the residential stock is dominated by an overwhelming precentage of dwellings built more than 30 years ago.

In the Bucharest – Ilfov region, the share of residences built between 1990 and 2019 is 16.8%, with a significant difference between the Capital (10.3%) and Ilfov county (46.1%), a situation that illustrates a high appetite for the expansion of the city in neighboring towns, such as Popești Leordeni, Chiajna, Bragadiru or Voluntari. In total absolute numbers, both in Bucharest and Ilfov, 90,000 residences have been built over the last 30 years.

After Bucharest and Ilfov, the largest residential markets over the last 30 years are Cluj (77,074 new homes), Constanța (66,645 units), Iași (59,948), Suceava (58,557) and Timiș (48,714).

The most active residential markets in Romania, in terms of deliveries made between 1990 and 2019

County Finalised residences 1990 – 2019 Residential stock     (End of 2019) New residential share       (1990 – 2019) in total
Bucureşti 90.294 875.248 10,3%
Ilfov 89.834 194.674 46,1%
Cluj 77.074 350.350 22,0%
Constanţa 66.645 301.292 22,1%
Iaşi 59.948 331.203 18,1%
Suceava 58.557 273.199 21,4%
Timiş 48.714 308.592 15,8%
Argeş 43.719 283.101 15,4%
Prahova 39.147 329.330 11,9%
Bacău 37.712 284.003 13,3%
Braşov 35.671 256.319 13,9%

Source: Cushman & Wakefield Echinox, based on the National Institute of Statistics data

Mihaela Pană, Partner Residential Agency, Cushman & Wakefield Echinox: “Despite the constant development of the last 4-5 years, the residential market in Romania remains underdeveloped, the residential stock still being dominated by old apartments, which mostly have small surfaces, a lack of parking spaces and a low quality of construction in terms of ​​facilities and common areas. In the cities with a better economic evolution, such as Bucharest, Cluj, Iaşi, Constanța, Timiș or Sibiu, the new residential share is above the national average, but even in these counties there is still enough room for development in order to improve the living conditions. In addition, other counties such as Bihor, Dolj or Prahova, have positive demographic and macroeconomic indicators and a new residential deficit, so they have a good potential for residential development.”

The share of residences built between 1990 and 2019 in the total residential stock – counties map

 

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