R E A L T
R E A L T
The global economic slowdown and the SARS COV 2 (COVID-19) impact are reflected in the forecasts for 2020 regarding the real estate market, in general, and particulary, in Bucharest. Even Q1 2020 showed evolutive numbers in terms of price per sqm or in terms of transactions, the sellers expectations decreased in March 2020 and were kept as the same level with the previous month for the first part of April and in the second part of the month, the expected prices registered a slightly increase of 2% for old buildings and 2.5% for the new buildings, comparing with the previous month. This happened linked with the number of potential buyers which decreased every week starting mid of March until mid of April 2020, according with monitoring centers of the research real estate platforms. The decrease starts from 16,000/ week potential buyers to the bottom level which was around 5,000/week. The interest for residential properties is continuing a slightly increase in terms of research for available properties for sale, more exactly with 14% higher at the end of April comparing with the previous week. In the end, according with Land Register Office report, in Bucharest, for April 2020, there were registered 7,000 real estate transaction, 31% less than in March 2020.
On the other hand, the big difference between the 2008 crises and the current eventual crises is that now there are many potential investors with cash, who are expecting for opportunities. And yes, it might offer some opportunities coming from the fields more affected by SARS COV 2 (COVID-19), like HORECA and hotels industry. Another indicator that might affect the real estate market is a currency depreciation. In this context, the scenario of lockdown of the market is not feasible, considering that real estate transaction will continue to be closed. However, the market is more prepared to face a potential economic crises.