Romanian Apartment Prices Dn 10-40% In 1H - Darian Rom-Suisse

Description:

The prices of apartments in Romania fell by 10-40% in local currency in the first six months, compared with the end of 2008, with a 23% price decrease for old apartments and 17% for new ones, according to valuation company Darian Rom-Suisse.

The apartment price cut was triggered by the decrease of construction and workforce costs, according to Darian representatives.

In the capital city, Bucharest, apartment prices fell 33% on the old dwelling segment, and 25% on the new dwelling segment, compared with the end of 2008.

As for the upcoming period, Darian representatives consider the current slight price balance as unsustainable through the anti-crisis programs adopted by the government in this sector.

According to Darian representatives, property values will follow the general economic trend, and the economy contraction could continue to trigger the real estate price cut.

Prices collapsed on the lands market in the first six months as well, blocking investors' money, according to Darian representatives.

Thus, the average land price fall was at 26% in the first six months in the Romanian cities, except for Bucharest.

Source: Mediafax