Residential properties’ prices to stagnate in Romania as Prima Casa is phased out - research

The prices of the residential properties will stagnate next year, as the programme of state guarantees Prima Casa is phased out, according to a research conducted by real estate consultancy firm RE/MAX Romania in partnership with real estate platform imobiliare.ro. The research admits that the demand is rising, though. As demand invigorated, house prices rose in Bucharest and regional centers: Cluj-Napoca (by less than 1% to an average of 1,500 euros / sqm), Iasi (+2.9%, from 1,016 euros / sqm to 1,045 euros / sqm), Timisoara (+0.3%, from 1,200 euros / sqm to 1,204 euros / sqm). By 2022, particularly the properties located in key areas of the first-tier cities will increase significantly, according to the research. The government will reduce by 25% the guarantees extended under Prima Casa, a programme that has played a key role in the residential real estate market but also for the financial intermediation. On the upside, the ROBOR benchmark market interest rate, at least for the 3-month maturity, is expected by the authors of the research to remain below 3.5%. A notable pattern visible over the past 12 months and likely to continue in the future is the development of residential projects in the close proximity of business districts. editor@romania-insider.com