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Real Estate: Luxury home sales increased spectacularly in the past 5 years
Luxury home sales increased spectacularly in the past 5 years and account for 5 percent of the overall real estate market, despite 30 percent of the properties having been listed with pricea over one million euros, a recent study released by a real estate company shows.
Romanians earning high incomes and expats working in multinational companies are the main buyers. According to the study released by Regatta Real Estate, the most recent trend to be noted on this segment is to purchase properties designed by architects and furnished by interior designer where the buyers can move as fast as possible.
Clients look for already reconsolidated and renovated patrimony or historical houses that kept their original detail and finishes in good condition. While clients who purchase properties in Bucharest are interested in either historical buildings or houses with modern design, but located in central areas, clients looking for homes outside the Capital usually prefer houses on the shores of lakes surrounding the city. Clients in the luxury segment prefer Snagov, Buftea and Mogosoaia lakes.
"There are also investors who purchase a house for 600,000 euros, invest an additional 500,000 euros in it and manage to sell it for about 2 million euros," president of Regatta Real Estate Eduard Uzunov said.
Prices remain, at least on the luxury segment, significantly lower than in 2008. In Primaverii area, land prices vary between 2,000 and 4,000 euro/sqm, while apartments are sold for 1,500-5,000 euro/sqm.
"In 2008, apartment prices started at 5,000 euros/sqm and reached 8,000 euro/sqm," Uzunov said. An apartment in Primaverii area is currently sold for at least 200,000 euros.