Romanians Rent Flats In Bucharest, Afraid Or Unable To Buy

"Compared to the same period of the previous year, we can notice an increase in the number of rents by some 15% and a 20% increase in the number of rental transactions among all our transactions. (...) This fall, a great deal of clients who wanted to buy a home, devoid of access to loans or confused by the market’s situation, decided to rent for a while," said Coldwell Banker Affiliates of Romania expansion manager Adrian Ghimpau.

 

According to the company, the market is influenced by the international crisis, which made it more difficult for developers to access financing and for clients to access loans, as well as by the local context, namely “real estate euphoria” for new projects, which overlooked the purchase power, the buyers’ debt ceiling and the real demand by end clients.

 

"Thus, a price boosting spiral was created based on opportunity: speculations made by investors who created a false absorption of homes on the market and the easy access to financing made available for developers," said a press release.

 

In the near future prices are estimated to grow, but also "rental clients might become slightly more sophisticated," more careful with the conditions, outfitting or access, according to the quoted source.

 

"In the medium term, however, if the current situation persists, there will surely be countless developers who will not be able to sell the homes they build. And since these products need to bring revenues, they will be put up for rent, and the tenants will most likely be the ones to buy the homes. Therefore there will be a stock of apartments that will trigger a slight decrease in prices and a higher offer on the rental market," said the press release.

 

Between September and October, 45% of the company’s rental transactions in Bucharest targeted studio flats, 30% - two room flats, 15% - three rooms and 10% targeted villas.

 

According to Coldwell Banker data, in Bucharest rents for a studio flat reached EUR6-800 between September and October in the Primaverii area, EUR4-500 in the Dorobanti area, EUR500 in the Unirii area and EUR300-350 in Colentina.

 

Coldwell Banker Affiliates of Romania is the local representative of real estate company Coldwell Banker and provides consultancy and brokerage services for all segments of the real estate market, connected services or property and facility management. Coldwell Banker entered the Romanian market in 2007.