Romanian suburbs deliver over half of the new apartments, says Coldwell Banker Romania report

Over a half (54 percent) of the new apartments delivered in 2016 in the seven biggest residential markets in Romania (Bucharest, Cluj – Napoca, Timisoara, Iasi, Constanța, Sibiu and Brasov) were in the suburbs of the big cities, according to a report of the real estate company Coldwell Banker Romania based on the data of the National Institute of Statistics (INS).

Out of the 27,273 apartments finished last year in the seven biggest local residential markets, only 12,417 or 46 percent were placed inside the cities, while 14,856 were placed in the outskirts.

The biggest disproportions are in Bucharest, Timisoara and Sibiu, where the number of apartments delivered outskirts is double compared with the apartments delivered inside the cities.

Thus in the western areas ( Chiajna–Rosu) and the Southern areas (Popesti–Leordeni and Bragadiru) of Bucharest attracted the most apartments deliveries among the Bucharest suburbs, followed by Eastern area (Dobroesti and Pantelimon). In Giroc and Dumbravita, the localities in Timisoara suburbs, were delivered in 2016 more apartments compared with those inside the city, while Selimbăr and Cisnadie attracted a similar number of deliveries with those in Sibiu.

The gap between the number of apartments finished in the big cities and the suburbs will maintain also this year, although the delivered apartments within the cities is in continuous growth in the context of middle-market segment development.

„The existence of some big land lots at prices significantly more reduced than those inside cities allowed the developers to build apartments that fulfill this demand. The economic growth from the last years was seen also in the middle-market segment development characterized by placement inside the cities and usually by higher surfaces compared with the old ones. Although some developers built mini-cities in the suburbs, the general issues of infrastructure continue to represent the main challenge of the suburbs development in Romania,” says Gabriel Voicu, director New Homes Division within Coldwell Banker Romania.

Another locality that had a significant development is Florești, near Cluj-Napoca. Thus, in the last 10 years were finished over 16,300 apartments in Floresti, compared with 12.400 in Cluj-Napoca.