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Real estate: Analysis of the Romanian real estate market
The budget allocated for the purchase of a one-room apartment 6 years ago is now enough to buy a new apartment with 3 or 4 rooms or even a house and courtyard because of prices dropping since the beginning of the financial crisis.
“Before the economic recession period, 60,000 euro was a modest amount to buy an apartment. In March 2008, a peak moment for the local residential market, that amount allowed the purchase of a one-room apartment in big towns. In the last 6 years things have radically changed. Such a budget is now enough for the purchase of a new apartment with 3 or 4 rooms,” according to a press release of the real estate site imobiliare.ro.
According to offers made on the site, the average price for a one-room apartment was 82,000 euro in Bucharest in 2008, while a three-room apartment was 123,000 euro. Today you can easily find old apartments with 3-4 rooms in Titan, Drumul Taberei, Crangasi or MIlitari for 60,000 euro.
Although at the beginning of 2008, 60,000 euro was a small price for the new residential segment, now the offer for this category is a substantial one even in Bucharest. Such a budget is enough to buy an apartment with 2-3 rooms in areas like Berceni, Colentina, Drumul Taberei, Prelungirea Ghencea, Bucurestii Noi, Rahova, Baneasa or even Nicolae Grigorescu. In Drumul Taberei, for instance, a three-room apartment of 70 square meters costs 60,000 euro. With the same amount, you can buy even a recently buiit house in one of the nearby localities such as Pantelimon, Bragadiru, Corbeanca, Tunari, Chitila,etc.
The dropping prices in Brasov made that in 6 years the budget for a one room apartment can now buy old apartments with 3,4 or 5 rooms in areas like Astra, Racadau, Tractorul, Triaj, Noua, etc. In Tractorul area a 5 room apartment of 118 sq.m, costs 58,000 euro. New apartments with 2-4 rooms can be bought with that money.
In Constanta, the average price in March 2008 for a one room or two room apartment was 45,300 euro and 79,000 euro. As in other big towns now, a budget of 60,000 euro allows the purchase of an old apartment with 3-4 rooms in areas like Tomis Nord, Poarta 6, Inel I, Inel II, CET, Far, Energia, etc. Even in the central area four rooms of 72 sq.m. are sold for 52,000 euro.
Before the crisis, the price of a one room apartment in Cluj Napoca was about 50,000 euro, while a two-room apartment was 74,000 euro. Today, you can buy apartments with 3-4 rooms with 60,000 euro in areas like Manastur, Iris, Zorilor. In the central area a 4 room apartment of 80 sq.m. costs 53,000 euro. In the new residential segment you can buy 3-4 room apartments in Floresti and Zorilor areas for 52,000 euro. In Floresti, a house built in 2008 with 3 rooms and an area of 82 sq.m. is sold for 52,000 euro.
In Timisoara, the average price for a one room apartment was 45,000 euro in 2008, while a two room apartment was 75,000 euro. Now you can buy an old 3-4 room apartment for 60,000 euro in Torontalului, Girocului, Steaua, Lipovei, Sagului, Aradului areas. A new 2-3 room apartment can be also bought for that amount.