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Real estate: A Bucharest resident needs 114 average salaries to buy a 50 sq.m apartment

A Bucharest resident needs 114 average salaries to buy a two-room apartment of 50 square meters, according to a statement made by a real estate developer.

“The accessibility index of buying a new apartment in Bucharest reached a new historic low level, 114 average salaries being needed to buy a new two-room apartment in Bucharest, compared to 119 salaries in January 2016 and 395 average salaries in January 2008,” the document shows.

The accessibility index of buying a new apartment is calculated according to the average salary per economy, average prices per square meter and the leu-euro exchange rate.

According to the press release, about 12,000 new apartment are being developed now in Bucharest and could be commissioned this year.

“Most of them, 59.5% or 7,200 units are included in the mass market segment, on the rise by 6% compared to 2016. The share of the middle market segment will continue to be high in 2017, on the background of development of more residential projects in semi-central areas and close to business centres (Barbu Vacarescu-Floreasca and Polytechnic-Grozavesti), 4.500 units or 37% of the offer, to be completed this year in Bucharest and the surrounding area”.

The absorption degree was over 80% units throughout last year, until delivery of market projects, on the background of a high accessibility degree of purchasing new apartments, despite irregular financing.

“The main method of purchase in the mass market segment is First House financing, its share being about 75% of overall transactions. Projects included in this segment deliver houses/apartments accessible as prices, which vary between 700 and 950 euros/square meter, on the average, the price being the main factor of differentiation, followed by location. About 4,500 units to be completed this year in the residential market in Bucharest and the surrounding area, or 37% of offer, can be included in the middle market category, a segment in which average transaction prices are included between 1,100 and 1,300 euros/sq.m.,” according to Coldwell Banker Romania.