Wednesday, October 7, 2009

Prices of old two-room apartments dropped again in Q3

According to the survey on the dynamics of the asking price on old two-room apartments in the third quarter 2009, significant decreases were registered in Romania's largest cities, with the exception of Cluj-Napoca municipality. Despite the first signs of recovery under the influence of the "First Home" programme, owners and real estate agencies reduce their expectations. shows that, in Bucharest, the sellers' average asking price for a two-room apartment situated in blocks built before the Revolution with an area of 54 square meters, dropped by more than 8,000 euros, down from an average of 77,385 euros (1,443 euros / sqm), registered in early July, to 69,008 euros (1,277 euros / sqm) at the end of September. If the asking price remains relatively high, the transaction price is significantly lower.

The real estate market in Brasov continues to register significant decreases: at the end of September, the average asking price for an old two-room apartment with an area of 53 sqm was more than 8,000 euros lower than in early July, following a trend similar to that of capital. Thus, at the end of the third quarter, real estate agencies and owners were asking an average price of 52,795 euros (998 euros / sqm) for a two-room apartment, as against 61,395 euros (1,145 euros / sqm). The lowest level, 50,500 euros, was reached at the end of August.

After several months of decline, the average price asked for a two-room apartment in Cluj-Napoca registered a trend of slight increase during the period under survey, fluctuating very little around the value 56,500 euros (1,086 euros / sqm). The highest average value, 57,223 euros, was reached in mid-September, and the minimum average, 55,033 euros, was registered in mid-July.

As regards Constanţa, the rate of decrease of the average price asked for old two-room apartments accelerated during the period under survey. Thus, at the end of the third quarter, the average asking price for a real estate of this kind with an area of 52 sqm, was 55,376 euros (1,115 euros / sqm), compared to the value registered in early July, 63,429 euros (1,299 euros / mp).