Old apartments in sector one are 7% cheaper

Prices of old apartments in Bucharest went down by less than 1% in June this year compared with the previous month, with the most significant decline being reported for homes in the Capital's sector one (-7%), according to the real estate index set up by real estate consultancy Colliers International. The average price of old homes in Bucharest reached 1,794 euros/square metre in June, compared with 1,808 euros/square metre in May, while apartments in sector one of the Capital, which includes districts such as Dorobanti, Aviatiei and Baneasa, reached 2,061 euros/square metre, following the price decline. According to the real estate index put together by ZIARUL FINANCIAR, apartments in the Aviatiei district became 23% cheaper in June, while in Dorobanti, prices asked by buyers were 16% lower than in May. However, apartments in the sector one of Bucharest (which covers the Northern part of Bucharest) remain the most expensive in the capital, with the second most expensive sector being the sector four, which includes districts such as Tineretului and Berceni, where the average price is 1,995 euros/square metre, according to Colliers.

--

Source: http://www.zf.ro/articol_179197/old_apartments_in_sector_one_are_7__cheaper.html

Central Bank hits the breaks on the credits market, new rules imposed

Romania Central Bank (BNR) tries to slow down the pace on the fast growing credit market, suggesting a new set of regulations designed to harden the already constrictive conditions in which credits may be obtained. BNR suggests that the banks and other financial institutions take into account a maximum of 20% larger income than the one declared for taxes in the previous year, instead of considering the income evidence issued by companies or other similar documents.

In a previous set of measures, BNR increased the key interest rate six times in nine months, up to 10%, the largest figure since August 2005.

BNR also suggests banks to introduce a new element, called "stress test", to evaluate the credit refund capacity in inauspicious circumstances. The draft issued by BNR is opened for public debate until July 16. Banks may have to adopt the new rules within 45 days after they are approved.

--

Source: http://english.hotnews.ro/stiri-business-3498322-central-bank-hits-the-breaks-the-credits-market-new-rules-imposed.htm

Bucharest apartment prices continue to drop

Apartment prices in Bucharest continued their downward trend in June this year, dropping 6.2% as compared to May, according to a private report set up by anunturiparticulari.ro, Romanian news agency NewsIn informs. The system supervises real estate ads published by private people both in newspapers and on the web. On Tuesday, real estate company Colliers International announced that apartment prices in Bucharest dropped by 1%. Both monitoring systems report that prices, even so, are higher than the ones registered in the same period last year.

Most apartments on sale in Bucharest are two room apartments which on average are sold with 114,000 euro, a 2,000 euro decrease as compared to May. Even so, apartments are still 34% more expensive than a year ago.

Colliers International data show significant price decreases in June this year. Their Bucharest Real Estate Index registered a value of 1834 euro/sq. meter, a 9 units drop as compared to its value in May.

Thus, despite the fact that prices decrease, apartments are still expensive. According to the real estate company, as compared to last year, apartments are 15% more expensive.

--

Source: http://english.hotnews.ro/stiri-bucharest-3493401-bucharest-apartment-prices-continue-drop.htm

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.

--

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%.

--

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

Colliers: Old apartment prices in Bucharest down while new apartments stagnated in May this year

Prices of old apartments in Romania capital Bucharest dropped by an average of 5% in May this year as compared to April as a result of fewer transactions on the market, according to a monthly analysis by real estate consultancy company Colliers Residential Division. The data show a stagnation of prices for new apartments in Bucharest for the same period.

The monthly real estate index BREI launched by the company recently, the only Bucharest district to report an improvement of prices is District 3 - but the boost is limited to 2%.

District 6 has the lowest prices, according to the same report.

--

Source: http://english.hotnews.ro/stiri-business-3255707-colliers-old-apartment-prices-bucharest-down-while-new-apartments-stagnated-may-this-year.htm

Romania Invest to continue to buy new apartments

Norwegian-based Romania Invest, which holds around 1,000 new apartments in Bucharest in its portfolio, has acquired 25 homes in the My Dream Residences project in the Pipera district, and intends to start selling the first homes in the Residenz project in the town of Chitila, when the construction is completed. In the My Dream project, the Norwegians mainly bought two and three-room apartments, in a transaction worth 4 to 5 million euros, with the sale of the 35 apartments they hold in Residenz to start in the coming two months. "We will continue to buy because we are certain the market will recover. We don't know exactly when - six months, a year - but the real estate market, like other markets, has a cyclical evolution. Moreover, under the current circumstances, it is easier for us to do good business financially, given that the market has become a buyers' market," Bjorn Hauge, country manager of Romania Invest, told ZF. The Norwegians have purchased homes in the Planorama, Residenz, Ten Blocks, Blue Tower, Vitan Platinum Towers and Armonia Titan projects at discount prices, which they were able to get due to the large number of housing units bought, and to the projects being in an early stage of development.

--

Source: http://www.zf.ro/articol_175448/romania_invest_to_continue_to_buy_new_apartments.html