ZF and Coldwell Banker Affiliates of Romania use the ads in Anuntul Telefonic (phone-in ads) publication to compile the index.
Asking prices are EUR500 (0.6%) higher than in January 2013 and EUR1,300 (1.7%) above the November 2012 level.
Real estate agents’ opinions on the reason for this increase vary: some say they did see prices rise, others believe the property market is still a buyer’s market.
“I’ve noticed an increase in asking prices lately, owners who ask for more money but the sale prices are lower than last year because people negotiate more,” said Iulian Badea, sales manager with Galaxy Imob real estate agency. He brokers mainly transactions in the Titan area of Bucharest (east of the city).
Why this increase in asking prices?
“Owners are more enthusiastic, I don’t know, maybe it’s because the spring’s early. Some may have been encouraged by the fact that the First Home scheme is on its last leg and thought they may get a better price for their apartments, but they’re wrong because in a few months when the cap runs out, old apartment prices will drop even more,” Badea added.
“Prices did go up. You can no longer find a three-room apartment for less than EUR80,000 in Drumul Sarii – 13 Septembrie area (close to the city center i.e.). Asking prices and sale prices are both higher. I think the owners took the coming of the spring into account, it’s different than it was last year,” says Elisabeta Stef, real estate agent with Apulum ’94.
Stef also said prices plummeted for apartments in old buildings in the city center. “It’s about those old apartment buildings that insurance companies no longer insure, which are almost impossible to buy with a mortgage loan.”
The increase in the prices in the ZF index may also have a technical explanation in that averages are not weighted by the number of offers and transactions in the various areas of Bucharest.
At the same time, in some districts, such as Militari (west of the city), price gaps between its various parts may be as high as 15% to 20%, says Alexandru Pricop, managing partner with real estate consultant Coldwell Banker Affiliates of Romania.
This shows again the need for an official index, compiled by the authorities that have access to final sale pries.
“I haven’t felt an overall price increase and the apartment market is still a buyer’s market. Indeed, there are more offers for sale in January and February (…) therefore the trend of the index may be due to a certain cyclicity,” the Coldwell Banker official said.
(English version by Loredana Fratila-Cristescu)