Bucharest has the least expensive homes of capitals in the region

Bucharest ranks last capital in Central and Eastern Europe (CEE) this year in terms of prices of housing units, after a constant decline in prices, of some 15 percent between January and June 2009, according to an analysis conducted by Business Standard, based on data provided by the King Sturge, Colliers, and REAS real estate consultancy companies.

In spite of increases driven by the government's "First Home" program, analysts expect that the market will drop continuously by year-end. "The difference between prices registered in Bucharest and other European capitals is justified by the significant discrepancies at the infrastructure level. Moreover, most listed capitals are tourist cities, with high investing potential, and important business hubs," the Senior Residential Consultant of the DTZ Echinox real estate consultancy company, George Ivan, said.

"The fact that we are registering sharp drops and that we have the lowest prices in the region proves only that Romania is more affected by the crisis. [...] The value of properties is directly influenced by the economic and social context. We borrow; we have neither investments nor demand. I believe that the average real price is even lower, of some €1,100 per square meter," the Head of the Assessment Department of the CB Richard Ellis-Eurisko real estate company, Adrian Nicolescu, told Business Standard.

Prague is the most expensive city in the region, with an average price for a new apartment of €2,222/square meter.

Business Standard