CBRE Eurisko study: Romania real estate market stagnates. 2008 started with 20% price falls

Marţi, 20 mai 2008, 19:07 English | Business

Household prices will increase with only  5 to 15% this year, as compared to 50% in 2007. 2008 brought about land price decreases of up to 20% in several areas in Bucharest. Experts forecast that this is the first year in which, in several areas prices will either fall or stagnate. Office rentals will also stagnate in 2008 and after 2009-2010, prices in the sector might fall. 

CBRE Eurisko Evaluation department manager Adrian Nicolescu declared that starting with 2007, the real estate sector in Romania showed signs of stagnation and for some sectors, even a decrease in prices.

CBRE Eurisko experts argue that land prices started to decrease at a steady pace and land owners even consider selling them now when prices are still high. Nicolescu added that for 2008, experts estimate that unless prices fall, then at least they will stagnate.

When it comes to office rentals, prices are forecast to drop starting with 2009-2010 and to stagnate in 2008. Moreover, in the following years Bucharest will host some 1,950,000 sq. meters of buildings for office use only.