Housing market in Romania sees higher prices but lower demand

The asking prices for residential properties in Romania, both apartments and houses, increased overall with 1.4% in the second quarter of this year compared to the first quarter. The growth rate was similar to that recorded in the first quarter, according to real estate portal imobiliare.ro. Average apartment prices in Cluj-Napoca reached EUR 1,510 per sqm at end-June, up 1.9% compared to end-March and 14% compared to June 2017. In Bucharest, the average asking price reached EUR 1,280 at end-June, up 2.2% over March and 4.4% over June 2017. However, the growth rates were lower compared to last year, due to volatility on the demand side, especially on the housing segment targeted by the government-backed First House program beneficiaries, according to Adrian Erimescu, CEO of imobiliare.ro. The demand for residential properties was 5% lower in the country’s main cities compared to the similar period of 2017, with the biggest declines registered in Constanta (-15%), Bucharest (-8%) and Brasov (-4%). The evolution was mainly determined by the higher lending costs determined by the interbank interest rate (ROBOR) increase. Number of residential building permits, up 10.3% in Romania in four months editor@romania-insider.com