One United Properties (ONE), the leading green investor and developer of residential, mixed-use, and office real estate in Romania announces entering into a partnership with the prestigious Armani/Casa, a premiere for the Romanian market.

Romania maintains the third position in the top of the European countries with the cheapest new housing, after Bosnia and Herzegovina and Greece, with an average price of 1,504 EUR/sqm in 2023, slightly up from 1,461 EUR/sqm in 2022, according to Deloitte Property Index 2024, conducted in 24 countries based on data from their main cities and towns.

Bucharest ranks among the major European cities with the lowest housing prices and the highest affordability ratios, according to data from the Cushman & Wakefield Echinox real estate consultancy company.

One United Properties (BVB: ONE), Romania’s leading green developer of residential, mixed-use, and office real estate, recorded turnover of EUR 208.5 mln in the first nine months of 2024, an 11% year-on-year decrease. This marks the second time in the Company’s history that turnover has surpassed EUR 200 million already within the first three quarters, reaffirming One United Properties strong position in the Romanian real estate market. Gross profit for the period was EUR 70.8 mln, while net profit reached EUR 60 mln. 

By the end of 2024, the industry is expected to record a 25% y-o-y growth in Bucharest. Bucharest’s short-term rental market had a booming post-pandemic evolution. In 2023 alone, the industry generated revenues of €41.3 million, nearly double compared to 2019 and 46% over the performance recorded in 2022. With an average of 3,942 listings, this translated into an average yearly revenue of 10,500€ and a monthly income of 875€ per property.

Romania’s housing market proves to be resilient, despite rapidly rising interest rates and high inflation, coupled with a sluggish economy. House prices continue to rise, amidst robust demand and falling construction activity. In January 2024, the average selling price of apartments in the country rose by 6.49% y-o-y to €1,510 per square meter (sq. m), based on figures from imobiliare.ro. However, when adjusted for inflation, nationwide apartment prices dropped slightly by 0.86% over the same period.

Colliers estimates that if current trends continue, residential property prices could return to double-digit growth, outstripping average earnings growth. Falling housing approvals and therefore supply, coupled with rising demand, expectations of easing monetary conditions amid falling inflation and further wage increases, set the stage for rising house price pressures over the medium term. Colliers' consultants estimate that if current trends continue, residential property prices could return to double-digit growth, outstripping average earnings growth.

Real estate investment transactions in the Romanian commercial real estate sector totaled €419 million in H1 2024 and could reach around €700 million by the end of the year, surpassing 2023 levels, according to an analysis by Colliers. Romania’s performance places it in the leading position of the top six largest markets in Central and Eastern Europe (CEE), alongside Bulgaria, the Czech Republic, Hungary, Poland, and Slovakia.

The first half of 2024 ended with a modern stock of industrial and logistics space in Romania of about 7.3 million square meters, and developers have more than 700,000 square meters under construction in various stages, indicating that it could reach the 8 million square meters threshold next year, according to Colliers’ report on real estate market developments for the first half of the year.

Romania has remained one of the most affordable property markets in Central and Eastern Europe (CEE), with housing prices growing slower than income levels. In Bucharest, house prices have increased by approximately 50% over the past five years, while Cluj-Napoca has seen an 80% rise. By comparison, most major cities in the region have reported increases of 80% to 100% during the same period.