„In a decade of dedicated activity in the Romanian real estate market, RE/MAX has embarked on an impressive journey, from humble beginnings to consolidating a strong national network. During this period, we facilitated the transaction of tens of thousands of properties, contributing to significant changes in the country's real estate landscape. Additionally, we invested considerable efforts in the professional development of our agents, supporting thousands of trainees to enhance their skills and achieve remarkable performances in this competitive field. We are proud to be recognized as one of the leading players in the Romanian real estate market and are committed to continuing to bring innovation, professionalism, and excellence to every transaction and every relationship we have with our clients and the community as a whole," stated Răzvan Cuc, President of RE/MAX Romania.
The local subsidiary of the RE/MAX master franchise was taken over by the current management 10 years ago when RE/MAX Romania comprised a network of three offices and approximately 30 agents. By the end of 2014, the company had reached commissions of €430,000, with around 400 transactions. RE/MAX Romania has experienced constant growth in recent years, currently reaching a network of 60 offices and 700 agents.
By the end of the current year, RE/MAX Romania estimates reaching a number of 70 offices, 870 real estate consultants, and commissions of €15 million, from a volume of over 10,000 projected transactions. As medium-term development prospects, the company aims to reach, by 2029, a number of 150 franchises, 2000 agents, and a commission volume of 60 million euros.
In the 10 years of activity, RE/MAX Romania has brokered real estate transactions totaling over €2.5 billion. Regarding the traded housing units, which are the main segment of RE/MAX's activity, over 25,000 have been intermediated by the company's franchises. The most valuable residential properties intermediated during this period exceeded €3 million, but among the largest transactions are also a hotel, worth approximately €8 million, or land with projects over €10 million. The highest commission obtained by a RE/MAX agent was €300,000 from the sale of a commercial space.
Currently, Bucharest, Cluj, and Brașov are the most solid markets for RE/MAX, where a large number of affiliated offices and agents operate. As a turnkey business, the RE/MAX franchise does not require experience in the field, which is why over 80% of office owners come from outside the real estate industry. According to RE/MAX representatives, the brand's franchises are simple business models, involving a relatively small investment compared to other businesses, and can generate a quick return on investment, with subsequent profits ranging from 15% to 35% of turnover.
Regarding real estate education, one of the cornerstones of the RE/MAX franchise concept, the company has helped increase the level of professionalism in the local real estate market over time. In an industry where the lack of regulations and accredited specialists is one of the biggest obstacles, RE/MAX Romania has helped over 10,000 agents become real estate professionals by organizing over 500 dedicated workshops. Furthermore, starting in 2023, the RE/MAX network introduced exclusive representation throughout the entire network, raising the standards of the local network to those of Europe.
Professionalizing the profession could double the number of real estate consultants
On the occasion of its 10th anniversary in the local market, RE/MAX representatives state that the lack of a recognized and respected real estate agent profession has been the main challenge the company has faced in developing its business. At the same time, they express optimism that with the implementation of the Real Estate Agent Law, which is currently under legislation, the real estate consulting market will reach the mentioned standards and will experience accelerated growth in the next period. In the conditions of professionalization of the profession, RE/MAX representatives estimate a doubling of the number of agents in the next 5 years, to approximately 20,000 specialists.
To differentiate itself in the market and remain competitive, RE/MAX Romania has focused on the professional education of its agents from the beginning, through the programs of the RE/MAX Academy, which contain comprehensive programs for both consultants and agency owners. Starting last year, RE/MAX Romania switched entirely to exclusive representation of clients - sellers or buyers - where, like lawyers, the agent exclusively represents the interests of one party in the transaction.
Housing prices will rise by up to 10% in 2024
RE/MAX Romania presents the conclusions of an extensive study among real estate specialists, which includes statistics and trends from the real estate market, information about customer behavior, the evolution of the real estate market in the last five years, as well as an analysis of the professional trajectory of the respondents and the benefits obtained in the real estate consulting field. According to real estate specialists who participated in the RE/MAX study, housing prices - both houses and apartments - will increase this year. Approximately 35% of the interviewed specialists believe that house prices will increase by up to 10%, and in the case of apartments, about 43% anticipate the same percentage of growth. On the other hand, 26% believe that house prices will stagnate, the same being mentioned by about 33% of respondents regarding the evolution of apartment prices.
A different estimate, compared to last year, is found in the case of intravilan land, where 36% of specialists believe that prices will increase by up to 10%. Also, rent prices are expected to increase, with almost 50% of respondents believing that prices in this segment will increase by up to 10%, and 25% estimate stagnation. Regarding the evolution of prices for commercial properties, most respondents anticipate stagnation - 40% in the case of commercial spaces, 42% for office spaces - both for sale and for rent.
"The predictions for the real estate market in 2024 are quite uncertain, but there are indications suggesting a growth trend. On the one hand, we take into account the perspectives indicating a possible reduction in interest rates, alongside an anticipated economic expansion in 2024, and it is worth mentioning in this regard the salary increases at the end of last year, as well as the fact that this is an election year. On the other hand, the supply of new units has decreased in many cities, which can be reflected in high demand, and particularly many cities have announced investments in infrastructure, thus generating investment opportunities. In conclusion, we can say that 2024 looks favorable for the real estate market in Romania, a market that still has great growth potential," stated Răzvan Cuc, President of RE/MAX Romania.
The premises of the real estate market indicate accelerated growth in prices over the next 5 years
Romania has the cheapest real estate market in Europe, in relation to the salary per square meter of housing, according to RE/MAX Romania representatives. As an example, they mention that in Bucharest, one square meter of average housing can be purchased with 1.3 average salaries, which is much lower than any European capital. In comparison, in Prague, the same square meter can reach about 4 salaries, and in Budapest about 3 average salaries. Additionally, the percentage of purchases through mortgage loans is the lowest in Europe, they say, mentioning that about 55% of Romanians buy without credit.
As a result, RE/MAX Romania states that the local real estate market has all the premises to grow rapidly in the next five years in terms of prices, but also in terms of housing standards, which are currently the lowest in Europe. In this context, the company estimates positive medium and long-term prospects, respectively, a market characterized by high dynamics and an increased number of transactions.
