16 C
Bucharest
April 11, 2021
BUSINESS

Eurobank Property Services releases the Residential Property Index for the Romanian Market for Q3 2016

Eurobank Property Services (EPS) has recently released the latest figures of the Residential Property Index for the Romanian Market, covering the third quarter of 2016. The EPS Residential Index includes over 11 years of historical data, starting from 2005.

At the national level, according to the latest estimation of the EPS Residential Price Index for Romania, price levels remain stable, exhibiting a slight increase of 0.1% in the third quarter of 2016, as compared to the previous quarter. On an annual basis, comparing with the third quarter of 2015, there has been an upward trend which resulted to an overall increase of 2.4% (y-o-y). The recent price stabilization is a sign of slight improvements in the Romanian Residential Property Market. In particular, in the past five years, an average change of 0.2% per annum has been observed.  This positive trend, generated by the recent changes in prices, induces a sense of optimism regarding the possible recovery of prices.

These recovery signs are also confirmed by the Bucharest residential index, which exhibits a y-o-y growth of 3.9%, in line with the evolution recorded in the previous quarter. A similar situation is observed in the Bucharest Ring Index, which continues its upward trend by 4.0%. Central Bucharest also presented a positive price growth of 2.9%, whereas Bucharest and Ilfov Division showed a positive price growth of 3.9% in the third quarter of 2016, as compared to similar period of 2015.

In seven out of eight divisions of Romania, the positive y-o-y trend has been maintained in the third quarter of 2016 as well. Moldova exhibits the highest y-o-y price increase, of 4.2%, among all divisions. The following divisions presenting significant y-o-y price increase are Muntenia and South with 4.0% and 3.9% respectively. On the other hand, North division recorded a y-o-y price reduction.

The indices of the largest cities in Romania present a moderately stable overall performance, with quarterly fluctuations that seem to consist of short term corrections or statistical noise, rather than any solid indication of distinctive performance, either positive or negative. Ploiesti, Constanta and Iasi exhibit an upward y-o-y trend of 3.0% on average, whereas Braila presents a negative growth of -1.8% y-o-y. The prices of new properties in Bucharest continued to outperform the average level, with a 4.6% y-o-y increase. This positive growth in the prices of new properties in Bucharest leads to an increase in prices of the new properties of 4.2% y-o-y, at a national level.

Overall, the new release of the EPS Residential Price Index suggests that the market is ready for further price increases. This is more evident in the large cities. The full potential of the price growth may become apparent soon.

Eurobank Property Services S.A. is a subsidiary of Eurobank Group. Established in June 2005, as an integrated service centre, the company offers complete real estate solutions. Eurobank Property Services has developed a vast network in the Romanian territory, operating from its Head Office in Bucharest. Eurobank Property Services has managed to maintain its competitive position among the top real estate companies in Romania, by developing an important portfolio of customers including banks, with Bancpost being the main client, public institutions, real estate funds, foreign investors, local real estate development companies, as well as private companies.

 

 

 

Related posts

Sale of greenhouse gas emission certificates brings little cash to Romania

Nine O' Clock

Gov’t approves the enforcement of ‘Electorata’

Nine O' Clock

Agriculture Ministry sets up agency to promote Romanian products

Nine O' Clock