dwellings

The price of homes in Bucharest remains high compared to demand expectations, limiting the number of real estate transactions, according to real estate consultancy company Coldwell Banker Affiliates of Romania.

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 residential prices might fall by another 20-30% this year, after a drop of up to 20% so far, as the demand lowered in the last period due to the difficult access to bank loans, Adrian Crivii, the general manager of evaluation company Darian, said Wednesday.

Romanian dwelling prices are seen down 30% in 2009, according to real estate consultancy firm Cushman & Wakefield, which recommends investments in high-rent generating properties.

Romanian dwelling prices are seen down 30% in 2009, according to real estate consultancy firm Cushman & Wakefield, which recommends investments in high-rent generating properties.

The growth rate in prices for new dwellings in Romania’s capital city of Bucharest will slow down in 2008 to 15-20% following increased demand, given that house prices hiked in 2007 by an average 20%, according to data provided by realty consulting company Colliers International.

Mayoralties will be able to get loans for upgrade works on the heating system of buildings if tenants’ associations cannot afford to pay the necessary sums, but the money will subsequently be recovered from owners, Romania’s minister of development and public works Laszlo Borbely said Thursday.