Monday, October 6, 2008

Prices of one-room and two-room apartments dropped by over 10%

The global financial crisis determined an accentuated drop in prices and an increase in the sales offer. Thus, from March until now, one-room apartment prices have dropped by almost 10%, while two-room apartment prices by 12.6%.
According to the latest report of, September marks a significant increase in offers on the apartment sales market, but also a decrease in prices for the seventh consecutive month. "The prices required by owners for their apartments in Bucharest are lower and lower, many of them willing to sell their apartments in order to avoid the risk of higher losses in the next period," says the General Manager of, Silvia Vîlceanu.
She also says that, for the real estate market, March is a line of demarcation between the period of spectacular growths and the start of the real estate crisis. "This month is not only the period with the most sales offers, but also with the highest prices for all types of buildings. From March until now, one-room apartment prices have fallen by almost 10%, registering, for the first time this year, a decrease under 70,000 euros. Similarly, two-room apartments have lost 12.6% of the price asked in March, having been put up for sale at an average value of 107,162 euros, in September", Vîlceanu added. At the same time, the four-room apartments are the only apartments that have not changed their market price, as against March, however they see a dramatic drop compared to last month, when their value decreased by 6.8%. "We estimate that, by the end of the year, old apartments market will not register a stabilisation in the number of offers, given that the sale decision is generally influenced by the evolution of the market. The financial instability of the international markets will also produce effects on the Romanian real estate market, through a continuous decline in old apartment prices", considers the General Manager of According to the monitoring report conducted by, the sales offer for old apartments increased by 40%, as compared to September last year, and last month, the Bucharesters put up for sale 3621 apartments, while last year in September, the offer was only 2574 housing units.



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