Prices have hit a new record low since the start of the realty boom until now, both countrywide and in Bucharest, and the decrease in home prices is deeply felt at the level of big cities.
“The recent turmoil fueled by the depreciation of the Romanian leu has prompted people to steer clear of large investments. However, the decline in home prices did not offset buyers’ low appetite for purchases,” Adrian Erimescu, general manager of imobiliare.ro., said in a press release Monday.
In Bucharest, average home prices reached an average EUR1,125/square meter in July, for both new and old apartments, down 0.6% on the month. The prices of apartment in Bucharest fell 3.2% on the year in July. Average prices of old apartments in Bucharest reached EUR1,048/square meter in July, down 1.3% on the month and down 5.2% on the year. The prices of studio apartments saw a two-digit decline, the prices of two-room apartments fell 1.3% and those of three-room apartments decreased by 1.4%.
According to imobiliare.ro, home prices in Brasov, central Romania, have seen a completely different trend compared to the situation in all the other large cities in Romania. Thus, average home prices reached EUR869/square meter in July, up 1.9% on the month. Current average prices are very close to prices registered in the same period a year ago. The prices of new apartments in Brasov are nearly 7% higher on the year in July.
The prices of apartments in Cluj-Napoca, northwestern Romania, continue to follow the downward trend in the first half of the year. The average price of apartments in Cluj reaches EUR899/square meter, below the threshold of EUR900/square meter. Current prices are 4.7% lower than prices registered in the same timeframe a year ago, hitting a new record-low since the start of the realty boom until now. Cluj remains the city with the most expensive old apartments.
The prices of apartments in southeastern city of Constanta, on the Black Sea Coast, continue their downward trend. In July, the average price saw the biggest decline compared to the other six large cities under survey. Avearge prices reached EUR876/square meter, down 2% on the month and over 8% lower than in the same period in 2011.
In Timisoara, western Romania, home prices fell 1.5% in July, reaching the second largest decline, after Constanta. The average price of EUR784/square meter registered in July is 1.5% lower on the month and 4.4% lower on the year.
Launched in January 2000, imobiliare.ro is the main real estate portal in Romania, with more than 31,000 unique visitors daily.