New apartments are the new trend on the residential market mainly because of the increasing land cost. Developers prefer to build on hight to maximize the profit and diminish the land cost in the final price.
As demand for new properties is higher then ever, the current number of new developments on the market seams pretty low. Only 5000 units up for sale in 2006 and an estimate of 6000 in 2007 and 2008. (off-plan properties for Bucharest only).
From 3 projects in 2005 the market saw an increased offer of 19 projects in 2006. A total number of almost 4000 apartments were sold in 2006 with an additional forecast of 4000 units in 2007.
You have to remember that we are talking about off plan apartments, with approximately 2000 units to be delivered in second semester of 2007 and 2008. Big projects are new on the market and their influence will increase fast in time to come. Central Park (454 units) and Quadra Place (343 units) will be the first projects to be delivered by the end of 2007.
Total number of projects announced for 2010 is close to 20,000 units, with an estimate of additional 10,000 to be announced in next 3 years. Based on previous experience less then half the projects are developed, so a total of 15,000 apartments will be available for sale by 2010. Is important know that total number of houses in Bucharest is over 700,000 units, most part of which are from communist era.
Vast majority of the projects are targeting the middle class, but starting from 2007 the market has seen far wider range of properties to cater more expensive taste but also lower budget households.
Most part of new projects on the market were successful, the few exceptions suffering from poor location or bad marketing.
First to sell in a project were studios, due to their low price and to the fact that they are regarded as easier to resell. One and two bedrooms are also in great demand, selling within few months from the launch of any project.
Penthouses in top level projects are a big success too, mainly because for their small number and sometimes for their view.
Location is the prime factor for a successful investment. For top class properties in Bucharest you have to look for central and north projects. For middle class apartments is better to look close to center location, next to public transport, walking distance from metro station and park.