RE/MAX Romania, part of the world real estate group, estimates that the local real estate consultancy market has reached a value of roughly EUR 80 million.
At the same time, considering the upward trend of the industry’s figures in Europe, RE/MAX experts forecast this segment has potential to double its value in about 5 years.
According to RE/MAX Romania, the local real estate consultancy market has considerable changed in the past years. If in 2014, the real este sector was marked by instability, but also by a big increase potential, in 2019 the industry is focusing on a new phase of the consultancy services, which tends to join the European pattern and markets.
„The real estate consultancy market has known an accelerated evolution in the last years, meaning the Romanians’ growing appetite for real estate transactions need specialised expertise, and a constant professional guidance, focused on the clients’ needs and preferences.
On the other hand, we notice that there still is a big growth potential of the sector on the local market, which needs common efforts of the players to reach a peak.
Constant investments in education and the need of professionalization of the agents to Western standards will enable a change of perception of the Romanian public regarding the industry, by offering the customer the trust that he needs in the high-quality services of the real estate agent,” Răzvan Cuc, President RE/MAX Romania told a press conference on Tuesday.
According to an analysis conducted by RE/MAX Romania, there are around 8,000 real estate agents currently operating on the local market, meaning one agent per 2,5000 inhabitants, which is rather low proportion reported to the market’s needs. In comparison, in high-developed Western countries, the ratio is four times higher, while in USA there is one agent per 300 inhabitants.
Razvan Cuc considers that, in order to reach this peak, a professional norm of the industry should be enforced, as well as a working model focused on exclusive representation, and also establishing some strong associations and networks in the field.
Turnover increased by 10 times in the past 5 years
RE/MAX Romania was set up five years ago, with three offices and around 30 agents. If by the end of 2014, the company reported a turnover of EUR 430,000, cumulated on all franchises, 400 transactions, this year RE/MAX estimates an increase of the turnover by ten times up to EUR 4.2 million and 50 franchised offices, 500 members and around 3,700 concluded transactions.
The company’s president said that the medium term plans envisage to reach 110 franchises until 2023 and around 1,000 affiliated agents.
According to internal statistics, 42% of the RE/MAX Romania franchisers are aged from 20 to 30, while the percent of those aged from 30 to 40 represents 33%.
Over 80% of the transactions belong to the residential segment
The residential segment has known the largest rise in the past years, according to RE/MAX Romania. If five years ago, around 59% of the intermediations were lodgings, in 2018 the residential segment reached around 81% out of the total transactions. The rest of 19% represented: 7% plots of land, 5% offices, 4% commercial and 3% industrial.
The largest property traded in the last years is an industrial space in Sibiu, which was sold by EUR 2,530,000, but other big transactions were also in Cluj-Napoca (2 plots of lands-one sold for EUR 2.5 M and the other for almost EUR 2 M), an industrial space in Cluj (EUR 1.6M) and an apartment in Bucharest (EUR 1.5 M).