Prices of three-room apartments in Bucharest hit a new low

In mid of 2012 the average price of an old three-room apartment in Bucharest is EUR 77,200, 1.2 percent less than at the beginning of the year. In recent months, the prices of the old three-room apartments from Bucharest, continued to decline, despite some owners trying slight price increases, according to data recorded by Ziarul Financiar (ZF) in collaboration with consulting firm Coldwell Banker Affiliates of Romania using prices from www.anuntul.ro.

The EUR 77,200 price for a three-room apartment in Bucharest is lowest seen in the last seven years. According to imobiliare.ro, the average price of old apartments with three rooms in Bucharest was EUR 1,027 per square meter, down by 2.8 percent from the beginning of the year. Out of 20 areas of Bucharest analyzed in the ZF Index, the cheapest three-bedroom homes are in the Berceni district, where the average price of apartments with three rooms is EUR 62,000. Properties priced below EUR 70,000 are eligible for purchase via the First house program, and can be found in Colentina, Crangasi, Drumul Taberei, Oltenitei and Titan, or in other words, everywhere except the north of city. The neighborhoods where most owners have dropped the price the last month are Vitan, Mihai Bravu, Stefan cel Mare and Aviatiei, with reductions of at least EUR 4,000 in June compared to May, according to the real estate index by ZF. The real estate market is uncertain and is not showing signs of recovery. Constructions in the first three months of the year decreased by 11 percent, while the number of construction permits released for residential buildings also decreased by 3 percent in the first five months of the year. Ioana Toader, ioana.toader@romania-insider.com