Housing prices are thought only for profitPublish date: 16-07-2009
In a free market lacking transactions and full of uncertainties we are witnessing a moderation in housing prices in Romania. At this moment, all the players in the market are interested to know how much they will fall, so that the values attained would be normal and not exorbitant ones, as they were a year ago, but at the same time to be available for trading. From the perspective of some analysts, the normal values a sqm price should reach is somewhere around 600-700 euros/sqm, but current housing prices are based on profit and not on the purchasing power of Romanians.
"To make a fair evaluation one should take into account extremely many factors which can not be motivated in a few words. I consider that 600-700 euro / sq m is an approachable price. At present, however, the prices are not made for the purchasing power of Romanians by category, but are related only to profit," Mihai Stan, CEO of the real estate portal TopEstate.ro, told the Curierul Naţional.
Housing values like 4 years ago
With regard to housing values, Mihai Stan told us that the phenomenon called global crisis "has brought prices to what they were in 2005-2006, prices for old dwellings have decreased by up to 40%, in some cases even up to 50%, generally for those built before 1980. " As for the new housing, overall prices have not fallen by more than 10%. "The relative rigidity of prices for the new housing is due primarily to the high cost of building materials in the period 2006 - 2008, when these works were made, and not ultimately because of the high cost of land. In Constanţa, on the whole, housing prices decreased by 20% to 40%, in Alba county by 30%, and in Arad much less, by 5 - 10%," he added. Matei Maloş, General Manager, MagazinulDeCase.ro, also opinates the values of old housing have been considerably adjusted. Thus, they "have reached half the value attained at the peak of the real estate bubble, in some cases they have dropped even more than that."
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei