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December 7, 2022

Residential property average price hits new all-time low

Average residential property price hit a new all-time low in May, despite trend in asking prices been different among major Romanian cities, including Bucharest. Bucharest and Constanta have even registered price rises, according to imobiliare.ro cited by Mediafax.

With a national average of EUR 1,196/ sq m of NIA, the imobiliare.ro indicator is hitting new low since the beginning of the property crisis. Apartment pierces have followed distinct trends in big Romanian cities. While in Bucharest and Constanta we saw quite surprising price hikes in both old and new properties, the same cannot be said in relation to the rest of the analysed big cities. Timisoara is the city with the steepest apartment price fall. Price differences between old and new apartments in Iasi continue to be considerable. Cluj, at last, came in line with the decreasing trend, but Brasov is slowly but surely turning into an expensive city. Compared with the previous month, the May indicator applicable to the entire market decreased by 0.4 per cent at EUR 1,196/ sq m of net internal area, the lowest value registered ever since the real estate crisis hit. On the other hand, the year over year decrease from EUR 1,211/ sq m of net internal area was not a spectacular one. However, if the comparison is made against the peak of the local property market when the average asking price was EUR 2,058/ sq m, the decrease was by nearly 42 per cent.

From a different point of view, the number of housing units delivered in Q1 fell by 24.6 per cent (2,610 units) from year earlier, standing at 7,985 units, most of which being in urban areas, according to National Statistical Institute (INS). Fifty-one per cent of the residential properties completed in the said period were in urban areas, the rest being based in rural areas, INS states in a press release.

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