Wednesday, May 14, 2008

Colliers to launch a real estate index for Bucharest in May

At the end of May, real estate consultant Colliers International will launch a quarterly real estate index, the first of this kind in Romania achieved by a company of this kind, which will monitor the evolution of housing prices in Bucharest.
"This is the first real estate index in Romania and will be a measuring tool for the evolution of Bucharest's residential market. The Bucharest Real Estate Index (BREI) will monitor the evolution of apartment prices in the Capital and represents a reference point in the professional development of Romania's real estate market", reads a Collier release. BREI will have 2005 as starting date for the analysis and will be published quarterly. The index will be launched at the end of May, together with a virtual real estate exchange through which those interested will be able to get familiarised with investments in these markets.
Colliers will provide more details about the Real Estate Exchange in the forthcoming days.
"If, until now, most opinions on the Romanian real estate market were mainly based on rumour or personal opinions, through this index we want to offer those interested in this dynamic market an objective instrument for the analysis of price evolution and future tendencies", declared in the release Colliers Real Estate Department Manager, Ilinca Păun.
The index was achieved by a team of consultants and analysts of the company and is based on eight secondary indicators that monitor price evolution in the six sectors of Bucharest, both for the older apartments in the blocks built before 1990, and for those in the new residential projects, built in the recent years.
Each sector was divided in districts, and for each district offers and transactions from certain areas were chosen, following a calculation algorithm based on the weight of sales according to quality and price. Also taken into account were the differences between the ways to measure and express areas, but also other factors that influence the apartments' final price per sq.m.
"We have obtained an indicator having at its basis the way to create capital market indicators in Europe, but which also takes into account the volume and the share of sales in certain areas, and the new deliveries of apartments in the market", said Călin Bucur, the coordinator of the group of analysts.



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