In the other capitals considered–Warsaw, Budapest, Prague, Bratislava, Sofia, Tallinn, Ljubljana, Vilnius, Riga and Zagreb–the prices stagnated or decreased.
Throughout 2011, the average price asked by developers for apartments in Bucharest decreased by 1.4%, according to the report.
Issues faced by the new apartment segment in Romania include low demand caused by struggling economy, low purchase power and the stand-by stance taken by buyers, according to the report.
At the same time, the document’s authors said there is an apparent lack of confidence between buyers and developers, as many projects remain unfinished or frozen.
The prices of apartments in Bucharest saw in the final quarter of 2011 an evolution that contradicts those in other capitals such as Warsaw or Prague, where prices dropped more than 5%. In Warsaw throughout 2011 prices dropped by 2.8%.
According to the study, in the third quarter of 2011 there were 97 residential projects on sale, cumulating 4,419 apartments, with the average price reaching EUR1,500 per square meter. However, there are developers that go as far as EUR2,000-2,500 per sqm.
REAS is active on the realty consultancy segment in Central Europe, partnering with Jones Lang LaSalle.