Issue of the month
How do you think real estate prices in Bucharest and Romania at large will develop over the next ten years?
Ray Breden, chairman, Branch Advisory Board in Romania to British Romanian Chamber of Commerce
Real estate prices in Bucharest have been rising rapidly in the last three years, and this is reflective both of a relative shortage of quality industrial, commercial and residential property and of increased investment from both domestic and foreign sources. Outside of Bucharest the market is similar, but price increases are not as high. There is every sign that with Romania’s accession to the European Union that demand for real estate will continue to grow, and I expect that to be reflected in rising prices, although for how long the present rate of increase will continue is anybody’s guess.
Victor Kevehazi, senior partner, KPMG Romania
Present signs are that there will be a continuing demand for development and, with Romania’s accession to the EU, I expect foreign investment to continue to grow. So long as these factors are present I expect prices to continue to rise, although it is impossible to say for how long, and whether or when the rate of increase will slow down or even flatten out. This will happen only where market forces achieve a position of being able to meet all demands for real estate without there being a shortage of property. I don’t think that anyone could give an accurate estimate of whether, or when, that might happen.
Eduard Uzunov, president of real estate firm Regatta
The EU integration will produce a shock wave on the real estate market. There will be a difference between those who did not collaborate with real estate agencies and those who looked for their expertise. In the context of the rising prices of construction materials and tighter tax collection, I think we will see many owners who cannot afford the upkeep of their properties.
Claudia Dascalescu, senior consultant residential department, DTZ Echinox
Prices are expected to increase for new constructions and renovated buildings located in the central northern area, to stagnate for already crowded areas such as Iancu Nicolae-Pipera and to decrease for apartments in communist blocks of flats. Demand is high for new apartments and stylish villas located in central and northern areas, as close as possible to the civic centre and to already well established luxury areas such as Primaverii, Aviatorilor, Kiseleff, Dorobanti, Herastrau and Floreasca.