Real estate consultant SVN expects housing deliveries to remain low in Bucharest this year
<p>Approximately 18,000 new homes are expected to be completed in Bucharest and its surrounding areas in 2025, according to the "Romania Residential Market Genome" report by real estate consultant SVN Romania. This figure matches the low level seen in 2024, which marked the lowest number of residential deliveries in the past five years.</p>

<p>Almost 17,000 new homes were completed in the Bucharest-Ilfov region in 2024, down 19,3% from 2023, according to the National Institute of Statistics (NIS). SVN Romania estimated in its spring report issued a year ago that approximately 17,500 residential units could be delivered in 2024 in the region.</p>

<p>In addition to the sharp decline in deliveries, there is also a significant drop in the new housing supply under development in the medium term, according to SVN's data. Currently, only around 6,600 residential units are under construction in Bucharest and its surroundings, with delivery scheduled for 2026 and 2027. By comparison, at the beginning of last year, approximately 11,300 homes were under development, expected to be completed in 2025 and 2026.</p>

<p>"The significant drop in the number of construction permits issued but also regarding the total usable area authorized for construction in residential buildings in Bucharest is already showing its effects: residential deliveries decreased by 19% in 2024 in Bucharest and its surroundings, in a context in which home sales increased with an annual rate of 7.7%. This situation will also be recorded in 2025, most likely, and the main effect will be a higher price increase pace," stated <strong>Andrei Sarbu</strong>, CEO of SVN Romania.&nbsp;</p>

<p>The number of construction permits issued in Bucharest for residential buildings in 2024 was 2% lower than in 2023, 20% below the 2022 level, and nearly 39% lower than in 2021. Meanwhile, the total authorized usable area for construction in the capital declined by almost 6% compared to 2023 and was 27% smaller than in 2022.</p>

<p>For the first time, over 50% of the approximately 18,000 new homes expected to be delivered this year in Bucharest and its surroundings will be located in the northern part of the city. However, the final number of completed units will depend on adherence to development schedules and the ability to officially register and report newly finished dwellings.</p>

<p>The northern part of Bucharest will remain the city's main residential development hub, driven by a high number of large-scale projects currently in advanced stages, SVN said. Additionally, surrounding areas, particularly Pipera-Tunari, are experiencing significant growth, partly due to the decline in building permits issued inside Bucharest.</p>

<p>For the first time, the eastern side of the city is set to become the second most important residential development area, accounting for approximately 16.8% of the new supply expected for delivery in 2025. Meanwhile, the western part of Bucharest is projected to attract around 15.8% of this year's residential completions.</p>

<p>Most of the homes expected to be completed in 2025 in Bucharest and its surroundings, namely roughly 48.6% of the new supply, target the mass market segment. The middle market segment will have a market share of about 44.7% of the new supply, up from about 36.4% in 2024, while premium projects will hold a market share of about 6.7%.</p>

<p><i>irina.marica@romania-insider.com</i></p>

<p><i>(Photo source: SVN Romania)</i></p>