Housing prices asked in Capital fell by more than 26% on average

The average price asked by owners in the Capital in January 2010, compared with same month of previous year, registered drops of over 26% for one-, two-, three- and four-rooms apartments, according to the monitoring report made by anunturiparticulari.ro.
Thus, the prices of one-room apartments were cheaper, from 57,594 euros to 42,467 euros, two-room apartments from 90,870 euros to 68,902 euros, three-room apartments from 132,569 euros to 95,021 euros and four room ones dropped from 168,061 euros (January 2009) to 124,832 euros (January 2010).
Compared to 2006, the prices are still much higher. In 2006, a one/room apartment cost 32,332 euros, on average, a two-room apartment 49,000 euros, a three-room apartment 62,647 euros and four-room apartments were valued at 100,346 euros on average.
"This year, January was more agitated than usual and this mainly because of the uncertainties related to the First Home programme. If the programme was initially blocked for a period of time, its imminent change was announced from mid-February. Some of those who now qualify for the programme rush to submit their files, to be sure they do not lose this opportunity, while those who still do not qualify, expect more relaxed conditions for the entry into the programme. In conclusion everyone keeps their eyes on prices and there has been a sudden surge of interest from potential buyers, at least at the exploratory level," reads the real estate monitoring report for January 2010, conducted by anunturiparticulari.ro. According to the source cited above, the number of apartments put on the market is also on a downward slope. In the first month of this year, the private owners put up for sale less than 1700 apartments. There were on the market 652 two-room apartments, 489 two-room apartments, 382 one-room apartments and 137 four-room apartments.
The statistics is based on the real estate offers in Bucharest, posted by private individuals in the printed media and on the internet, and the average price is obtained from the initial prices asked by the owners.

AnunturiParticulari was launched in 2001 and monitors all the real estate ads published by private individuals in the printed media and on the internet.

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Source: http://www.curierulnational.ro/In%20brief/2010-02-03/Housing+prices+asked+in+Capital+fell+by+more+than+26%25+on+average

BNP Paribas: real estate assets in Romania still expensive

Romania does not offer favourable conditions for the investors interested in buying real estate because prices are still high, say BNP Paribas Real Estate representatives, but who, however, see a good opportunity to develop housing priced up to 100,000 euros.

"This year is not a good moment for international investors to buy property in Romania. The market is non-transparent, the investors do not have access to information on the real estate sector, and the difference between the prices requested by the seller and the buyers are willing to pay is still significant", the Deputy Executive Director of BNP Paribas Real Estate, the real estate division of French group BNP Paribas, Henri Faure, told the Mediafax agency.
In his opinion, under these circumstances, the developers that will not adapt to the market by lowering prices will have the most to suffer.

On the other hand, the BNP Paribas Real Estate representative considered that a very good opportunity on the Romanian market this year would be the development of housing priced up to 100,000 euros, to benefit from a payment of 5% VAT.

"The developers must adapt to market needs, to study better its future development. The development of such housing could be a solution to unblock the market," said Faure.
He noted that the most optimistic variant for the real estate market is a change of conditions from the second part of the year, if financing will be unblocked.

BNP Paribas Real Estate is present in Romania through Atisreal company, which acquired the Romanian company Cornerstone International last year. The Bucharest office provides brokerage, consulting and evaluation services on the residential segment, offices and investments.

"This year, we will focus on developing these activities, and, probably, from 2010 we will also bring to the Romanian market other services, namely property management and asset management," Faure mentioned.

The Executive Director of BNP Paribas Real Estate Property Management, Laurie Leclerc, said that, on this segment, the company is interested to buy a Romanian company or to enter into a partnership.

The Group holds three more companies in Romania, respectively Centelem in consumer credit, Cardif - insurance and Arval - leasing.

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Source: http://www.curierulnational.ro/In%20brief/2009-02-06/BNP+Paribas%3A+real+estate+assets+in+Romania+still+expensive

One-bedroom apartments cheaper in Q2

The price of older apartments in Bucharest dropped 12 percent in the second quarter, compared to Q1 2008. The most significant decline in prices was registered for one-bedroom apartments, at 13 percent, according to representatives of MagazinulDeCase.ro real estate portal.

“The average price of an old apartment in Bucharest was €119,000 in the second quarter of 2008,” according to a MagazinulDeCase.ro press release. The price is similar to the level registered in December 2007.

According to the Bucharest Real Estate index, compiled by Colliers International real estate consulting company, the price of old Bucharest apartments has been shifting since the beginning of 2008, with a 5 percent monthly decrease in May. The new apartment index amounted to €1,909 per square meter, the same level as in April 2008, while that for old apartments dropped to €1,808 per sqm, from €1,892 per sqm in April. This is due to fewer transactions on the market in April and May.

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Source: http://www.standard.ro/articol_52403/one_bedroom_apartments_cheaper_in_q2.html

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.

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Source: http://www.zf.ro/articol_177004/will_apartment_prices_in_bucharest_continue_to_fall_.html

Apartment prices in Aviatiei, Dorobanti and near Vitan Mall, down 20%

Apartment prices in three of the most expensive areas in Bucharest have seen dramatic falls of around 20% over the last month, according to a ZF analysis, based on sales advertised on website anuntul.ro. Whilst in May an 80 square-metre apartment in the Aviatiei district exceeded 200,000 euros, prices dropped to 170,000 euros in June. The ads reviewed, which consider three-room apartments built in the 1980-1990 period, do not provide the price of transactions, but give a general overview of the Bucharest real estate market. A possible explanation would be buyers' preference for new apartments rather than ones located in central areas. 6,000 homes are expected for completion this year, according to a ZF research, after 2,541 homes were delivered onto the market last year, according to the National Statistics Institute. The major price declines in some of the most expensive areas of Bucharest, such as Aviatiei, Dorobanti and near Vitan Mall (photo), come amid a lowering in the average price per square metre, which fell to under 2,000 euros, compared with 2,100 euros a month ago. For a 60 square-metre apartment, this means a saving of around 6,000 euros. Last month's decline, as well as the slower growth seen in the first quarter of the year, comes after a period during which building prices boomed. Apartment prices almost tripled between 2004 and 2007, with the biggest rise of around 65% witnessed in 2005. Therefore, 2008 could be the first year since 2004 when prices could either stagnate or rise by less than 10%.

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Source: http://www.zf.ro/articol_176436/apartment_prices_in_aviatiei__dorobanti_and_near_vitan_mall__down_20__.html

Bucharest Apartment Prices Saw First Decrease In Feb ‘08

Apartment prices in Romania’s capital city Bucharest have increased three times since January 1, 2005, but lowered this year in February, for the first time, according to the real estate index computed by global real estate services company Colliers International.
The company’s general manager, Bogdan Georgescu, told a press conference that February 2008 was the only month to see a decrease in house prices over the past three years.

Thus, the average price of an apartment in Bucharest reached EUR1,826/square meter in January, but lowered to EUR1,776 in February. Prices then climbed to EUR1,887 in March and to EUR1,888 in April.

Colliers officials estimate the prices of newly-built apartments will range between EUR1,150 and EUR2,200/square meter, VAT included, stressing the prices of old apartments might lower by 5 to 15%.

Late May, Colliers International launched a Romanian quarterly real estate index, the first of its kind in Romania, to keep track of the country’s booming real estate prices.


“This is the first real estate index in Romania and will measure the residential market in Bucharest. The Bucharest Real Estate Index, or BREI, will track the evolution of apartment prices in Bucharest,” Colliers said in a statement.

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Source: http://www.mediafax.ro/engleza/bucharest-apartment-prices-saw-first-decrease-in-feb-08.html?6966;2667202

The price of new apartments in 5 areas of Bucharest to increase by some 30%

The price of new apartments in the Tineretului, Titan, Militari, Colentina and Berceni areas will register a significant rise by the end of the year, of some 10-20 percent, and in some cases even 25-30 percent, according to consultants with the EuroMetropola real estate company.

“For example, while the current price in Colentina is €1,400-1,800/per square meter constructed, by the end of 2008 apartments in new buildings could sell for €1,800-2,500/per square meter. Similarly, a rise of some 25 percent is also expected in the Berceni area, where prices now range from €1,300-1,400/per square meter, but will reach €1,500-1,800/per square meter,” said Valeria Tudor, representative of EuroMetropola. (NewsIn)

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Source: http://www.standard.ro/articol_27766/the_price_of_new_apartments_in_5_areas_of_bucharest_to_increase_by_some_30.html