People who intend to buy a new home face several important dilemmas: will the price of real estate decrease or will it increase? Should I buy an apartment now or wait? Are we approaching a new economic crisis or is it not the case?
Against the background of the pandemic, in the spring of 2020 there was a decrease, but starting with July, the demand for residential properties has recovered. According to the data published by ANCPI - National Agency for Cadastre and Real Estate Advertising, there is even a slight increase in 2020 compared to the same period in 2019.
At the end of 2020, we invited some real estate experts to tell us their opinion on market trends and whether it is a good time for acquisitions. Each of them expressed their opinion, emphasizing a reason that makes them confident in the current situation of the real estate market.
The financial context is favorable
Toma Filipovici, President of the Professional Association of Real Estate Agents in Romania (APAIR): “If you have not considered accessing a real estate or mortgage loan, it would be advisable to go to a financial consultant, a loan broker, to find out for what amount could be granted to you. You may be amazed that the rate for a property can be equivalent to the rent you are currently paying.
Regarding the dynamics of the market in Bucharest, he states: “ A large number of representative buildings or premium and luxury ensembles are built while reading this material. Their influence on the neighborhoods will be one of progression, which means that we expect prices to rise. All the more so, the purchase decision should be quick. "
The value of real estate increases over time
Claudia Tudor, Sales Manager of The Concept, has a similar point of view: "In the long run, for over 5 years, apartment prices will rise. Moreover, as an investor, you can track recurring rental income. During this period, buyers "Depending on the stage of construction and the dynamics of sales, developers may be willing to give consistent discounts, depending on the advance paid under the contract."
Price fluctuations will be minimal
Mariana Stamate, Managing Director of MVGM Property Management Romania, considers that the residential market is stable and that there is no degree of comparison with the moment 2008 - 2009: "Fluctuations in home prices will be minimal. It is a competitive context in which developers are concerned to offer customers more facilities in residential complexes, they are noted for their attention to detail, optimized spaces, outdoor area, comfort and, of course, location and access to transportation.
Real estate investments cover inflation risks
R azvan Cuc President President RE / MAX Romania, is another expert believes that the purchase of an apartment at a time when the world is disoriented is a smart move: "In times of economic crisis, when all governments printed massive money, investment property covers the risk inflation ".
Generous and mature market
Adrian Rus, director of marketing and sales at Aqua City , recommends to those who still hesitate: "I warmly recommend that those eager to buy an apartment start their search now. The market is generous and offers options according to all criteria and requirements: area, old block or new residential complex, open-space or detached apartments, floor, facilities. Call and establish visions only with real estate agents or professional sales agents, who represent the owners or developers of residential projects. " .
Conclusions
One of the most important observations is that the pandemic has changed the way people perceive housing. Work from home has become a reality for a significant percentage of the population and living space needs - which have become both work and play and school - have changed.
There is a demand for new homes - with larger areas, with more generous terraces -, given that the demand for apartments was, prepandemically, higher than supply. According to a study conducted by Real Estate Analysis, the total supply of apartments was, in autumn 2020, 2.4% higher than in 2019, as a result of the accumulation of several properties available for sale in the emergency period of spring 2020. however, the price of real estate does not change much.
Besides the unanimous opinion that it is a good time to invest in a new apartment, the experts observed the state of other market indicators: the stability of the Euro exchange rate; bank interest rates still low; authorities trying to reduce the financial effort of potential buyers through the New House program, launched in the fall of 2020.
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What kind of offer does the Aqua City residential complex have? How generous is the space? Is there a terrace and leisure opportunities? Find out more by scheduling a viewing with one of our consultations.