A vast majority of developers on the Bucharest real estate market have opted to focus on developing small real estate bases of up to 100 units aiming at high income buyers for the past several years. According to a new study by A1 Real Estate, a consultancy firm, none of the projects completed in the city so far aimed at the medium class.
Interested in maximum profit at small investment, developers have so far reached their objectives, the study says. But the market offer has only grown at a very small percentage for years.
Despite dropping demographic numbers, Romania is facing a serious lack of living space. In average, each Romania has at home only 55% of the living area of a Hungarian and only 34% of that of a German. And in Bucharest A1 Real Estate analysts say only 60,000 families with a global monthly income of about 1,500 euro have the financial capacity to buy a new apartment or house.
If all projects announced so far are finished in due time, some 20,000 new apartments will be delivered in bucharest by 2011 - much below the market demand.
In comparison, some 70,000 new apartments have been delivered in Budapest since 2002 and another 10,000 are currently built if not yet sold.
A majority of apartments announced for the medium class on the Bucharest market have prices ranging from 800 to 1,2000 euro per square meter, plus VAT. But the buyer pays the same price for common surfaces (block entrance, terraces) and other areas that are not considered as living areas.
When it comes to office buildings, the total surface of office in Bucharest is of only 900,000 square meters, compared to 1,650,000 square meters in Budapest, a city that has 200,000 less people than the Romanian capital.
HotNews.ro, Oct 24, 2006
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