Bucharest: 1 billion euros invested in middle&upper class housing projects

Real estate developers active in Bucharest are investing a total of 1 billion euros in middle & upper class housing projects, according to Bucharest Real Estate Club.

The total investments volume, on all sub-segments of the Bucharest real estate market is 3.5 billion euros (of which the residential sector – middle & upper class quality projects represent a total of 1 billion euros).

The area that keeps on attracting most of the quality projects investments is the Northern part of Bucharest, with its sub-markets Barbu Vacarescu – Floreasca, Aviatiei, Pipera, Baneasa, Expozitiei, Sisesti – Straulesti.

National Real Estate Cadastre Agency data show a residential sales volume higher by 19% in 2020 as compared with 2019, despite a 2 months blockage during the lockdown period at pandemic outbreak.      

2-rooms apartments remain prioritary in the development mix for the middle segment, as they are most wanted by buyers and price – affordable.  

Individual houses and villas demand increases by 30%, but most projects focus on apartments well located within the City and served by various facilities.

Pandemic favors projects with multiple facilities for the living communities: green areas, children playgrounds or special areas designed for outdoor sports.

Considering the evolution towards a new hybrid work format (several days from home and several days from the office), developers also consider the idea to include an office area in the new housing layouts, which can improve the confort of working from home.

The luxury segment continues its development trend, with more and more sophisticated clients, whose incomes were not affected by the pndemic and who that pay up to 4-5.000 EUR/sqm for exclusive properties. 

MUST READ: Effects of the pandemic on the housing rental market in Bucharest

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