17.10.2023
The administrative deadlock and the uncertainty of the urban climate deepen the losses for Bucharest’s economy on multiple levels: the decrease in the number of homes delivered in Bucharest, versus Ilfov, as well as the taxes collected by the authorities.
The data from the National Institute of Statistics show a decrease in the share of the number of homes delivered in Bucharest to the detriment of those delivered in Ilfov. Thus, from 66.5% in 2020, it decreased consecutively to 60.60% in 2021, reaching 57.40% in 2022, while the share of Ilfov County increased.
FINALIZED RESIDENTIAL UNITS BUCHAREST & ILFOV, 2020-2022. SOURCE: INS
| YEAR | NUMBER OF NEWLY DELIVERED RESI UNITS | BUCHAREST | ILFOV |
| 2020 | 20,783 | 66.50% | 33.50% |
| 2021 | 22,010 | 60.60% | 39.40% |
| 2022 | 21,328 | 57.40% | 42.60% |
“The urban gridlock has clear effects regarding the accessibility of new homes in Bucharest. The share of deliveries from neighboring areas increases, this fact having a direct impact on the increase in traffic values and pollution in the Capital, where people come to work, to bring their children to school or for social activities”, says Despina Ponomarenco, President of BREC.
According to the financial statements submitted to ANAF (by companies active in the construction and real estate industry) as well as the INS statistics consulted by BREC analysts, Bucharest’s contribution to the national GDP decreased from 37% in 2019 to 34.6% in 2021 and up to 29.8% in 2022, a level similar to that of 2010, at the height of the financial crisis. The estimated loss for tax revenues is 3.45 billion Euros for the period 2022-2026, while the loss of added value in the economy for the same period is 10.4 billion Euros.
“In the context of the increasing strategic importance of the CEE area, Bucharest is losing major investments due to the uncertainty and lack of predictability in terms of urban regulation. The capital of Romania is in competition with other capitals in the CEE area, not with secondary cities in the country, so the losses are for the Romanian economy”, explains Despina Ponomarenco, President of BREC.
The Bucharest Real Estate Club Association (BREC), which represents the entire real estate industry – large developers, construction companies, architecture, project management, consulting, or real estate law – remains open to dialogue with the authorities to identify the best solutions so that Bucharest to return to a normal framework.