Real estate prices in Romania are set on a speculative basis, says the owner of a real estate agency in the Central Romanian city of Cluj Napoca, who also runs operations in Hungary, in an interview for Lazar O. Gabor says his company statistics show most properties are bought only for resale 1-3 years later.

Lazar O. Gabor compares the situation in Romania with that of Hungary, where the EU accession saw apartment prices drop to 38,000 euro as apartments are still waiting for buyers. He says in Romania older and newer buildings alike, in central areas of major cities, will keep a high value, as will pre-WWII buildings of historical importance which are very much valued among investors.

Meanwhile, he believes, Communist-style buildings with little comfort will lose ground against new block of flats, and that will reflect on prices.

And he suggests the Romanian market will be affected somehow differently from others when it comes to the impact of the credit market on the real estate businesses, as Romania is the country with the most personal dwellings in Europe and the lowest number of rent payers.

Based on the experience of Hungary, he says prices will generally start to fall when the number of new buildings will be higher than that of older buildings, leading to a spiraling trend on the market.