The evolution of the residential market in Romania, changes, opportunities and digitalization, with Victor Vremera, COO SVN Romania
Victor Vremera is the COO of SVN Romania, a real estate consulting company, which facilitates the acquisition, construction, rental and investment in all segments of the real estate market. SVN Romania represents the local office of the SVN network, and has the largest client portfolio in the Romanian market. We are honored to collaborate with the SVN Romania team, and today we invite you to a short interview about the Romanian real estate market, digitalization and the partnership with VAUNT, to which Victor Vremera, COO SVN Romania, answered.
How do you see the evolution of the residential market in Romania in 2024? What are some of the main trends or challenges that you think we will see?
2024 started with excellent results for the Romanian residential market, the premises being much better compared to those existing at the beginning of 2023. Thus, the first two months of 2024 brought an annual increase in home sales of 27% nationwide, while in Bucharest and Ilfov, almost 24% more houses and apartments were sold in January and February 2024 compared to the same period in 2023.
These results confirm that the increase in sales recorded at the end of 2023 was not determined by the change in the VAT rate but by the return of demand itself, in a context of dispelling the uncertainties that existed a year ago and improving credit conditions.
2024 will most likely bring a higher volume of sales, which will also translate into a higher absorption rate of the homes that will be completed, thus creating the prerequisites for a better price evolution compared to 2023.
Credit conditions are more favorable to buyers and interest rates will continue their downward trend, while the affordability of purchasing a new home – without resorting to bank financing and in a context in which over 60% of home sales in Romania are made with cash – is at the best level in the modern history of the market.
The profile SVN index, calculated over a period of over 10 years, shows that currently less than 83 national average net salaries are needed to buy a new home in Bucharest (two rooms, 50 square meters of usable space), compared to 96 salaries a year ago. This improvement occurred as a result of salary increases, with an average of over 15% in 2023, significantly higher compared to the increase in housing prices.
What do people who buy a home want now, what do they look at first?
If we’re eliminating the initial market category, price is no longer the main deciding factor for a potential buyer. In other words, most often, the difference will not be made in a lower or higher price by a few percent, but in location, neighborhoods, surface finishes and amenities.
Have these requests changed in any way in recent years?
The pandemic period has been synonymous with a higher number of requests for houses and apartments with more generous surfaces. In general, there is also a development of the market itself, concomitant with the increase in incomes, which translates into more homes targeting the middle market segment – that is, larger surfaces compared to those of homes completed before 1990, semi-central locations or in the north of Bucharest, quality finishes and amenities.
How do you see digitalization in the residential sector? What types of tech solutions do you think can have the greatest impact?
Given that potential buyers do a high degree of research on their own, online, digitalization solutions, which improve access to information and its quality, have become a clear differentiator.
How does VAUNT help you? Why did you decide to use the platform and what results have you seen?
VAUNT is the most complete solution in its field and the one most adapted to the domestic residential market. We are seeing good results and we are sure that they will continue to improve.
More details about SVN Romania are available here.
