- Romania | 30 April 2021
SVN Romanian operates as a franchise of the US parent company. How significant is this market for the SVN group, and what are the primary services SVN offers here?
SVN stands as one of the largest US-based realtors in terms of turnover. With 200 offices across seven countries, SVN brokered transactions of around EUR 12 billion in 2020.
SVN Romania emerged recently, yet it’s seen substantial growth. Could you outline the pivotal moments in the Romanian residential market based on your extensive experience, and its current defining features?
The 2009 economic crisis was a watershed, highlighting a speculative investor-driven market. Over time, end users now constitute 85-90% of transactions, with a noteworthy shift from larger to more efficient spaces post-2011-2013.
The postponed implementation of the 5% VAT rate cut for residential transactions up to EUR 90,000 has been impactful. What have you observed following this delay?
The postponement has led to disillusionment among clients and investors, affecting trust and impacting industries associated with real estate. However, despite this setback, transaction numbers have increased, particularly post-pandemic.
Housing prices have shown steady growth. How do you anticipate residential prices evolving, and what might stimulate future demand?
Residential pricing growth, mostly cost-driven, has seen moderate increases, averaging 10%. Pandemic-driven shifts in behavior towards larger homes and work-from-home setups have influenced demand.
Do you foresee this 10% growth persisting?
The growth is contextual, varying across regions. While the national level may sustain single-digit growth, cities like Cluj with booming IT sectors see more accelerated rates. Overall, Romania is likely to experience moderate and natural real estate price growth.
Looking ahead for SVN, what are your objectives for the next few years?
SVN aims to solidify its position in the residential market, aiming for a top-three spot by 2025. Expansion plans include enhancing Research and Valuations, Retail, and Offices segments, banking on Romania’s burgeoning potential in these areas.
