Average price of studio apartments down 20% from May 2008

Significant price drops are registered in the case of one, two, and three-bedroom apartments, while the price of a studio plunged by some €15,000 from May 2008.

According to the analysis, a one-bedroom apartment can be acquired for €80,000, a two-bedroom costs €90,000 and the price of a three-bedroom apartment in the Rahova and Berceni neighborhoods is €110,000. “Prices will stop dropping in the final months of 2008, although the downward trend will persist until September 2009. Even if prices decreased, the number of transactions remained low. But buyers will decide not to wait when this price drop becomes obvious,” Andrei Pascu, broker and owner of the RE/MAX Advantage Real estate agency, told Business Standard.

Andrei Sandu, General Manager of the Media City real estate agency, said that prices of old apartments will be computed based on those of new apartments. The difference between prices of old and new apartments will amount to some 15-20 percent. According to the Colliers index, Bucharest’s 6th sector will be most affected, with a 13 percent drop from last month and an average cost of €1,310/square meter.

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sursa: Business Standard, 12 noiembrie 2008