Residential Market Research, RO & EU
Iasi is the most important county in the North-East Region of Romania, being classified as a pole of growth on national level, surpassing in population and importance the other county-based municipalities of the region.
According to the TEMPO database of the National Institute of Statistics, the population of the Iasi Municipality consists of 789,977 people in 2017. In Iasi, the population is 365,660 inhabitants, being considered the second city of the country in terms of demographic size, after the capital Bucharest.
The city of Iasi has been, over time, an economic, social and cultural polarizing center for the communities in its proximity. As a result, in 2004 the first Inter-Community Development Association in the country – the Iasi Metropolitan Area was set up, at the request of the local authorities to approach in a form of partnership the development of the municipality and the adjacent localities.
Both the Iasi Municipality and some communes in the metropolitan area (Miroslava, Letcani, Rediu, Valea Lupului) enjoy significant tourist attractiveness due to the rich cultural and natural heritage. In this respect, it is worth mentioning that the cultural heritage of the Iasi County ranks second on national level in terms of the number of monuments after Bucharest, including archaeological sites, memorial houses, historical and architectural monuments, as well as museum complexes.
In Iasi, the most common type of tourism is generated by events (most often due to pilgrimages, festivals or meetings organized within the academical institutions), business and leisure. Thus, Iasi represents both the center for the economic and social development of the metropolitan area, with a role in the North-East Region, as well as a determinant factor in the national network of urban centers through its growth pole. Moreover, with the important resources of cultural and natural heritage elements, the city presents a real tourist potential.
Last but not least, a determinant factor for the profile of the Metropolitan Area and the Municipality of Iasi is the status of the second university center at national level, determined by the number of students, attractive for the young population, which can become the foundation and generator for the urban life revision and for the cultural and economical progress alike.
According to The National Prognosis Commission estimates, between 2016 and 2020, the Gross Domestic Product will see an increase on average of 88,144.80 million RON, as shown in the table below:
Progression of Gross Domestic Product in Northeast Region until 2020; (million RON, current prices)
Source: National Commission for Prognosis, Projection of the main economic and social indicators in Territorial Profile until 2020
On the other hand, the Iasi County is experiencing an explosive dynamic in the IT & outsourcing industries.
Thus, Iasi holds a dual source of development: a territorial one and a global one. This has many advantages in locating the IT industries, which are also a pole of talent, and regional economic convergence, but also a communication node that ensures the region’s relation to the global system.
Residential Price Index in Romania
In the third quarter of 2019, asking prices for residential properties in Romania increased, on average, by 3.2% compared to the previous quarter, according to the data centralized by Analize Imobiliare market analyzer. Although it is not substantial, this progress is higher than the average increase registered in the first two quarters of the year, and even in the four quarters of the previous year.
Concerning trading prices for housing, the newest data published by Eurostat and the National Institute of Statistics (INS) reveals, for the second quarter of 2019, a 1.6% quarterly growth and, respectively, a 4.2% annual growth at the level of the European Union. For the local market, the quarterly growth was of 1.6%, therefore equal to the average registered in the EU states. The 12-month price difference was, however, of 4.8%, so it was somewhat higher than the European average.
Price Trends Across Main Cities
From the cities having more than 200,000 inhabitants in Romania, the same seven regional centers had, in Q3 2019, average asking prices of more than €1,000 per useful square meter for the apartments available for sale.
Compared to the similar period of the past year, prices also had an upward development in most major cities.
Rental Prices in the Main Cities
In the third quarter of 2019 which, includes, of course, the month of September, the rental properties market was more dynamic than usual: the owner’s average asking prices registered an increase in all regional centers, as well as in other county seats. In Bucharest, the average asking rent for a two-room apartment now stands at EUR 410 per month, up from EUR 400 per month in the second quarter of the year. The same type of property (type 1 comfort, from the period 1980-2000, having a useful area of 50-60 square meters) can be rented in Cluj-Napoca at EUR 420 per month – up from the same level of EUR 400 per month.
The rent asked in the two-room apartment segment saw an equalization in the other regional centers included in the classification, and it has now reached EUR 350 per month in Timisoara, Brasov and Iasi. By comparison, last quarter, a housing unit could be rented, in the same cities, at EUR 340, 325, and respectively 300 per month.
Residential Price Index in Iași
After a growth of 1.1%, the average asking price for an apartment in the capital of Moldova reached a value of €1,280 per square meter last quarter. With one exception, the neighborhoods of Iasi registered a positive evolution in the price of apartments over the analysed period – however, the increase was also below 4% here, as well. This maximum growth margin was reached in the Pacurari-Canta area, where the sellers’ expectations reached an average of EUR 1350 per square metre. Compared to the similar period of last year, the asking prices for apartments in Iași are currently higher in most cases, the most significant annual differences being noted in the areas Nicolina – Cug (+7.9%), Pacurari- Popas Pacurari-Canta (+5.9%) and, respectively, Podul de Fier-Moara de Vant (+4%). In the Copou area, the annual growth (of 1.5%) is, interestingly, smaller than the quarterly growth (which was of 2%).
price/ sqm (€)
in the last 3 months %
in the last year %
|Downtown – Railway Station – Central – Ultra Central||1650||2%||1,4%|
|Podul de Fier – Moara de Vant||1375||0,8%||4%|
|Pacurari – Canta||1350||3,8%||5,9%|
|Nicolina – Cug||1350||1,5%||7,9%|
|Alexandru cel Bun – Dacia||1300||2,6%||3,8%|
|Tatarasi – Tudor Vladimirescu||1300||1,5%||0,8%|
|Galata – Mircea cel Batran||1100||1,1%||1,8%|
Demand for Residential Properties (for Rent)
In the third quarter of the current year, the interest for the procurement of residential properties around the country registered quite an important growth margin, compared to the three previous months.
Thus, approximately 175,000 potential buyers searched for apartments and houses put up for sale on Imobiliare.ro in the country’s six biggest cities – a figure which is equivalent to a 5.4% growth compared to the second quarter of 2019, when 166,000 searches were registered for the same markets.
By comparison with the similar period of 2018, the current demand volume in these regional centers is, as a whole, 16% higher, the growth trend being noticed in all major regional analyzed centers.
Demand for Residential Properties (for Rent)
In the major cities, the demand for apartments and houses for rent continues to be significantly lower than the demand for residential properties – however, it exceeds half of the latter’s volume. Thus, in the past three months, approximately 96,300 potential renters tried to rent a home using Imobiliare.ro, up from the 89,000 registered in the three previous months.
Real Estate Sales on National Level
According to data released by the National Agency for Cadastre and Real Estate Advertising (Romanian: Agenția Națională de Cadastru & Publicitate Imobiliară, ANCPI), in the third quarter of the current year, 148,857 real estate sales were concluded at national level. This level marks, on one hand, a growth of approximately 19% compared to the previous quarter (when 125,474 transactions were registered) but, on the other hand, a 9.5% increase compared to the similar period of 2018 (when 135,936 such operations were registered).
Quarterly Evolution of Transactions in the Main Romanian Counties
Unlike the previous three months, the volume of real estate transactions concluded in the third quarter of 2019 grew by comparison to the similar period of the previous year in most counties with the most intense activity under this chapter.
Residential Market in the CEE Region
Long-term, our development plan includes important cities across Europe. According to the Eurostat data, the table shows the changes inside the House price index for the Euro area.
It is easy to observe an increase in the HPI, especially for countries located in the CEE Region.
For example, in Q3 2019, the Czech Republic has had an increase of 8.6%, Poland of 9%,, Latvia of 13.5%, Slovakia of 11.5%, Hungary of 7.8%, Slovenia of 8.5% and Romania of 3.9%.
The Average Prices of Residential Properties in Europe
According to the “Average price of residential property (120 square meter apartments located in the most important cities) in Europe as of April 2020, per country (in euro per square meter)”, published by Statista.com, we can see that the average price per square meter in Romania, is one of the lowest in Europe, 1701 €/sqm.
Other countries in the region have higher prices: Slovenia (3657 €/sqm), Estonia (3190 €/sqm), Poland (2793 €/sqm), Latvia (2789 €/sqm), Slovakia (2911 €/sqm), Hungary (2515 €/sqm), Lithuania (2163 €/sqm), etc.
The selling prices are influenced by the purchase power and the health of the economy of a specific country, by the fact that major cities are booming amid the ongoing migration to urban areas, and by the growth of IT and tech industries. As mentioned before, long-term, our plan includes important cities from developed and under-developed countries inside Europe, and we start with Romania, which has the lowest selling prices per square meter for residential properties in the entire region. This represents a fair advantage to our project.
Thus, we comprise a constructive way of thinking, by focusing on achieving higher wages through impeccable work ethics, access to affordable financing, increased life quality and stability. We know that fluctuations may come and go, prices may vary continuously, but our premier goal is to improve the living conditions of our clients and the quality of our investors’ lives.