The Romanian economy registered a slight increase during 2011. In addition, the prices have declined in the last 3 years. Both of these aspects contributed to an increased activity visible on the residential real estate sector. According to ANCPI’s data, in 2011, the number of real estate transactions increased by 11% compared to 2010.
For this reason, GVA ASCO Properties is adapting its strategy by expanding its services on the residential properties market. Thus we are opening a new department that will cover our clients’ needs in this respect. A study issued by our team in Q4 2011 revealed the potential of the residential segment and the changes noted on the market since 2008. The informative notes below include our analysis major conclusions.
Since 2008, which is considered the real estate boom, the prices of the residential properties have gradually decreased. Therefore, the highest depreciation of houses’ values was recorded at the end of the last year. According to INS, the prices fell by 25-35% in 2011 compared to 2008.
The most drastic decreases were observed in the case of prices of villas. For example, medium sized villas in Victoria area were recording prices starting from 250,000 Euro in Q3 2010 which represented 50% of the value of the properties as per the same period of 2008. In 2011 prices have again decreased and in Q4 reached a minimum of 180,000 Euro for the same type of property.
In the case of apartments we again note the prices decrease by 35% compared to 2008 which was most visible in the case of 2-rooms apartments. The 3-rooms apartments registered drops of less than 24%. Studios on the other hand registered a less drastic downward trend, mainly because these properties can accommodate the needs of a wider range of customers. During 2010 – 2011, prices were maintained at approximately 29.000 – 45.000 Euros.
Short study – Victoriei area - Prices/Euro
| Year |
Medium sized villas |
3-rooms apartments
|
2-rooms apartments
|
Studios |
| 2009 |
500,000 |
140,000 - 190,000 |
70,000 - 90,000 |
70,000 - 90,000 |
| 2010 |
250,000 |
130,000 - 170,000 |
55,000 - 70,000 |
45,000 - 60,000 |
| 2011 |
180,000 |
110,000 - 140,000 |
45,000 - 60,000
|
29,000 - 45,000 |
Our experts consider that the residential segment has reached the bottom price level. 2012 will be a recovery year. Prices will begin to stabilize and slowly start to increase in the second semester as well as the number of transactions of residential properties. The residential market will grow along the general economic environment, without the spectacular increases noted in 2006-2008. Landlords and buyers alike align their requirements and expectations to a market in transaction. For more information and the offers existing on the residential market please contact us at 021 230 7777 or by email at rezidential@gvaasco.com.
For more information please contact Andreea Marin,
Marketing Assistant, GVA ASCO Properties
andreea.marin@gvaasco.com, 40 (0)21 230 7777