Thus, 272 construction permits for residential buildings were issued in Bucharest in the first nine months of 2024, 4.2% lower compared to the similar period of last year. 366 permits were issued in the first nine months of 2022, while in the first three quarters of 2021 were issued 496 construction permits – thus, the current number of permits is 45% lower than 2021´s level.
At the same time, the decrease in the total usable area authorised for construction in residential buildings in Bucharest is even more accentuated: the first nine months of 2024 brought a decrease of 62% compared to the level registered in the first nine months of 2021, reveals “SVN Romania Residential Market Drive” report.
”This drop registered in recent years already has a visible effect: the number of new homes delivered in Bucharest and its surroundings is at its lowest half-yearly level in the last five years, in a context in which home sales increased according to the official statistics. The current situation will continue in the coming years, which will translate into higher prices and a reduced accessibility. In addition, and just as important, there are investments of hundreds of millions of Euros, even billions, that Bucharest is losing due to the current urbanistic deadlock. And we are not only talking about residential projects that a developer does not build, but also office buildings, for example, which can lead to higher costs for companies and more difficult team expansions,” stated Andrei Sarbu, CEO SVN Romania.
Another effect is the redirection of the attention of some developers towards Bucharest´s limitrophe areas. In fact, 2023 brought a premiere from this point of view: Ilfov county surpassed Bucharest for the first time in terms of the total usable area authorised for construction in residential buildings, according to the data of the National Institute of Statistics (NIS) – a situation that was also recorded in 2024.
23% fewer new homes were delivered in Bucharest and its surroundings in the first half of 2024, compared with the first half of 2023. SVN Romania estimated in its spring report that 2024 could bring the lowest number of home deliveries registered in the last five years.
Almost 41,400 homes were sold in Bucharest in the first 10 months of 2024, up 11.3% compared to the first ten months of 2023, according to the data of the National Agency for Cadastre and Land Registration. At the same time, the number of residential transactions closed in Bucharest – Ilfov region was 14.3% higher in the same period.
SVN Romania is one of the main real estate consultants active in Romania and the company with the most extended activity on the residential market. In its five years activity, the company traded more than 10,000 dwellings with an overall value of over EUR 800 million, SVN consultants being involved in their careers in the sale of more than 30,000 residential units. SVN International Corp. has over 200 offices in eight countries and regions, with over 2,200 real estate consultants and staff.
