www.business-review.eu Business Review | July 2020
6 REAL ESTATE
Residential market showing resilience in the face of COVID-19 crisis The pandemic has slowed down the residential market due to the restrictions imposed by the government. In April 2020, the number of real estate transactions was almost 34 percent lower than the one recorded in April 2019, and the situation was similar in May. However, apartment prices did not follow the same trend. By Aurel Constantin
Ateneo Timisoara will include a supermarket, nine sports fields, a commercial centre and spaces for 120 shops
F
Ateneo Timisoara will include 1,300 apartments
ewer than half of employees have re-
other types of properties (5 percent). Of those
planning to use the services of an agent,� said
turned to their offices since the end of
planning to buy or rent a home, 44 percent
Mihai Sava, Real Estate Business Manager at
the state of emergency, therefore the
said their plans would not be affected in any
OLX Group.
demand for homes where employees can set
way by any new information about COVID-19.
up an office is still high, and it will remain at
However, 27 percent were thinking of choos-
CHANGES IN THE BUYING PROCESS
high levels as 60 percent of employees believe
ing a cheaper property, while 14 percent were
Asked how the pandemic had affected their
that working remotely would be useful for at
considering giving up buying and renting
plans to buy, 30 percent of respondents said
least 1-2 days a week, while 10 percent would
instead. Most Romanians surveyed believed
they were not looking to postpone their pur-
like to work from home for 3-4 days a week
that prices could go down in the next period,
chase. Only 8 percent were thinking of giving
in the coming period, according to a survey
while a smaller share thought this was too
up the purchase, while 31 percent of respon-
conducted by Colliers.
difficult to estimate at this point.
dents wanted to postpone it for a maximum
The search for a home that is better suited
“The period we are going through has led
of 3-6 months. Meanwhile, 8 percent of
for remote working thus continues. 74 per-
people to reconsider and reorganise several
potential buyers even wanted to speed up the
cent of respondents in a study by Storia.ro
aspects of their lives, so we wanted to find
process.
were planning to make a real estate transac-
out if and to what extent Romanians’ inten-
When asked how they were planning to
tion this year, with most of them being inter-
tions, expectations, and decisions regarding
finance the upcoming real estate acquisition,
ested in selling or buying (63 percent). The
real estate activity have changed. We found
53 percent of Romanians said they would
study was conducted in May 2020, through an
out that they were still interested in buying
choose to take out a mortgage loan, while 35
online questionnaire among Storia.ro visitors.
and renting properties and that most of their
percent said they already had the necessary
The sample included 2,565 respondents.
decisions had not been influenced by the pan-
amount. In the near future, 49 percent of
demic, but some were thinking of postponing
Romanians who want to buy a home are plan-
the pandemic could change their plans, 56
their decisions for three months to a year. A
ning to explore offers online, while 37 percent
percent of participants answered affirma-
common point we saw among many of the
are willing to go to house viewings.
tively, with the most affected properties
respondents referred to the choice of working
being apartments (43 percent), houses (41
with a real estate agent. Among respondents
decision easier when buying a property, 50
percent), followed by land (11 percent) and
who wanted to buy or rent, 59 percent were
percent said it would be helpful to see the
Asked whether new information about
As for the factors that would make the
