Demand for housing in Romania 56% higher than in the European Union

The number of new dwellings delivered per year in Romania is of 2.1 units per 1000 inhabitants, 56% below the EU average that is of 4.8 units per 1000 inhabitants, according to a report of the real estate developer, IMPACT SA.

“We estimate that, 100,000 dwellings have to be delivered yearly in Romania for 75 years, in order to reach the European level.” Oana Trifu, IMPACT’s manager, stated for Newsin.

“45,000 units were delivered last year, this discrepancy being caused by the shortage of big projects and the excessive bureaucracy the developers are facing with, construction authorization being very difficult to obtain.” Oana Trifu added.

The report also informs that the average area per dwelling in Romania is 44% below the European standards. Whilst in Romania the average dwelling area per inhabitant is of 20 sq m, in Hungary is of 28 sq m and in Denmark is of 52.4 sq m per inhabitant.

“Romania is well below the European standards as regards the area of the dwellings, but for the past few years an increase in the apartments’ surface can be noticed” Oana said.

The mortgage loans reached 3.25% of the GDP last year, amount which is far below the European standard where they reach almost 50% of the GDP.

“Our country is a beginner at this chapter, as the mortgage market is new for us” IMPACT representatives explained. Nevertheless, despite the 3 indicators which place Romania behind other European countries, the abovementioned report shows that Romania registered the most important achievement in Europe in the construction field, with an increase of 37% in 2007.

IMPACT SA, a privately held company, has been on the Romanian real estate development market since 1991 and, since 1996, the company has been listed on the Bucharest Stock Exchange Market (BVB).