Prices of apartments in Romania are “exaggerated” - JLL Romania

The prices on the Romanian residential market are exaggeratedly high, in many cases unjustified, said Marius Şcuta, head of the office department at JLL Romania on Thursday, in a meeting with the press.

In the case of recession, or a correction of the market, the luxury sub-segment will probably remain in demand and the prices will decrease by 10%-15%, while the mass segment, which includes “matchboxes” (apartments with small surface sold at a lower price) that are built everywhere at the outskirts of the capital city, will see a massive adjustment comparable to that seen during the crisis in 2008, he said, according to local Adevarul.

The residential sector is going through a period similar to the one before the 2008 crisis, with unjustifiably high prices, while the office market is going through a favorable period, with many multinational companies expanding their premises, concluded Şcuta.

Even though this year over 400,000 sqm of offices will be launched on the market, the vacancy rate will not increase, he argued in favour of the office market segment undergoing a bright period.

(Photo source: Pexels.com)