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Real Estate: Sale of apartments increased the prices over 10% in 2017, up to 1,160 euro/sqm

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Prices for apartments for sale in Romania (both new and old) continued their upwards trend in 2017, due to the increased appetite for acquisitions, and the expectations of the owners increased by 10.48% in the last 12 months, from 1,050 euro/sqm in December 2016 up to 1,160 euro/sqm, in December 2017 according to a specialty analysis.

After three quarters of increase (+4 in Q1, +2.56% in Q2 and +4.38 in Q3) the average sum requested for an apartment at national level diminished slightly in Q4 with 0.77%. This trend of stability of the prices is felt in the two biggest cities in the country (Bucuresti and Cluj-Napoca) is due to the completion of the funds for the programme ‘ Prima Casa’, fact which led to the calming down of the demand for apartments, according to the analysis of Imobiliare.ro.

The capital had the smallest annual margin for the increase of prices, approximately 10% from 1,141 to 1,256 euro/sqm. The old apartments were appreciated during this time with 9,27% (from 1,090 to 1,191 euro/sqm) and the new ones with 10,92% (from 1,172 to 1,300 euro/sqm). Discussed on quarters separately the expectations of the Bucharest sales increased by 2,98% in Q1, by 4,24% in Q2 but by only 0,16% in Q4.

In Brasov, the average price requested for an apartment increased with almost 12% during the last year (from 900 to 1,009 euro/sqm) thus surpassing the threshold of 1,000 euro/sqm. The apartments in old buildings got more expesive during this period with 11.31% (from 911 to 1,041 euro/sqm) but the new ones had a jump from 14.48% (from 871 ti 996 euro/sqm). By comparison to other cities of the country, the prices increased during the four quarters of the year with 2,78 % in Q1 with 3.35% in Q2, with 2.41% in Q3 and 3.06% in Q4 respectively.

Cluj-Napoca is the champion as regards the price growth for the residential sector. The expectations of the sales of apartments increased with approximately 16.84% from 1,247 to 1,457 euro/sqm. Cluj recovered the greatest part of the decline happening during the recession period, the present value being very close to the maximum of the market, 1,551 euro/sqm in April 2008. Over the last 12 months the price for old residences appreciated by 18.3% (from 1,279 to 1,513 euro/sqm) and the new ones with 17.4% (from 1,184 to 1,390 euro/sqm). The quarterly evolution of the prices for new and old apartments was not typical. If during the first three months of the year the prices increased slightly, with only 1.04%, in Q2 there was a difference of 8.89% and during the third one an increase of 6.05%. In Q4 the residences appreciated by 0.14%.

Constanta is the other big regional centre where the price of apartments surpassed in 2017 the threshold of 1,000 euro/sqm. The prices increased with 12.74% from 973 to 1,097 euro/sqm. The old residences got more expensive with 12.69% in the last 12 months (from 969 to 1,092 euro/sqm) and the new ones with 12.44% (from 989 to 1,112 euro/sqm). The biggest advance of 5.24% took place in Q2 while during Q1 and Q3 the growth was lower than 2% (1,95% and 1,72% respectively). In Q4 the expectations of the owners recorded a moderate advance of 3.3%.

In Iasi, the average prices had an annual increase of 13.7% for new and old apartments, from 854 to 971 euro/sqm. The old residences appreciated by 7.18%(from 878 to 941 euro/sqm), but the new ones recorded a difference of 19.88% (from 825 to 989 euro/sqm). A considerable advance of the prices, of 7.03% took place in Q1 after which there was increase of 2.41%  in Q2 and 4.91% in Q3. In the last three months of 2017, the apartments got cheaper with 1.12%, Iasi being the only city which had such a decrease.

In Timisoara, the apartments for sale got more expensive as a whole with 11.59% in 2017, from 1,027 to 1,146 euro/sqm. The residences in old buildings had an increase of 13.06% (from 1,018 to 1,151 euro/sqm) and the new ones appreciated by 7.29% (from 1,056 to 1,133 euro/sqm). After increase of 3.7% in Q1 and 4.32% in Q2 the Timisoara market had a slowing down of the growth rhythm of prices in the second half of the year. The residences appreciated by 1.62% in Q3 and 1,51% in Q4.

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