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Romania’s Cap City New Apartment Prices Dn Up To 40% Y-Y In 1H – Survey

The prices in euro currency of the new dwellings from Romania’s capital city Bucharest dropped by 15-40% in average in the first semester compared with the same period a year ago, touching 2005‘s prices, according to a survey conducted by real estate consultancy firm CB Richard Ellis (CBRE).
Romania’s Cap City New Apartment Prices Dn Up To 40% Y-Y In 1H – Survey
17 aug. 2009, 15:53, English

However, in Romanian leu currency, the fall in Bucharest’s new dwelling prices was not so accentuated due to the fluctuation of leu’s exchange rate against the euro.

"The downfall in prices varied between 15% and 40% in the first half of the year, compared with the similar period a year earlier, according to the location, the finishing and the facilities, as well as the developers’ strategy,” CB Richard Ellis stated.

Thus, the new dwellings’ price downfall starts from EUR400 and reaches EUR1,500, the realtor stated.

In the Sisesti-Straulesti area, the developers were asking a price of EUR1,800-2,800 per square meters in 2008, 2-fold higher compared with EUR1,000-1,300/sq. m. in the first semester of 2009.

The prices of new dwellings in Aviatorilor-Kiseleff and the downtown areas dropped by EUR500 per sq. m., at EUR3,500-4,000/sq. m., respectively EUR1,500-2,500/sq. m.

In the Baneasa-Pipera area, the developers sell the new dwellings with EUR1,000-1,700 per sq. m., compared with EUR1,600-2,800/sq. m. in 2008, while the prices in Corbeanca area dropped by EUR100-400/sq. m. at EUR800-1,000/sq. m. in the first semester.

According to CB Richard Ellis, the price downfall will continue in the next period, due to the potential clients’ lack of liquidity.

The prices of rented dwellings dropped by 10-30% in the first year-half, compared with last year, the survey stated, estimating that the downward trend will continue until the offer-demand report gets more stable.

CB Richard Ellis offers real estate consultancy services, corporate responsibility and project management services. In 2008, CBRE bought Romania’s Eurisko Consulting, which became afterwards CBRE Eurisko.