Monday, June 23, 2008

Will apartment prices in Bucharest continue to fall?

The prices of old apartments in Bucharest saw the first declines in the first half of the year, and the trend could continue over the next few months, amid a reluctance manifested by potential buyers, due to the price boom seen over the last few years. "Prices of old apartments rose above the affordability of a regular family, and a whole category of buyers will not to pay such high prices for homes, which will cost less in ten years' time," says Calin Clinciu, development manager of real estate consultancy Euroest. "I think half the supply on the old apartment market was artificial, in that many people who did not intend to go through with the sale, put the homes up for sale at very high prices," according to Ionut Bordei, manager of the residential department of real estate consultancy CB Richard Ellis Eurisko. Clinciu believes the overall growth of the market caught up with these high asking prices after a few months, and this is how prices reached non-realistic levels, according to some consultants. As for new apartments, despite the decline in the number of deals for some projects, prices are not going down, except in the case of overvalued projects.



No comments: