Colliers International real estate consulting firm will release late this May the Bucharest Real Estate Index (BREI), the first property stock index in Romania, together with the opening of a virtual real estate exchange, the company reports.
The BREI index will reflect the development in prices for flats in Bucharest City, while the virtual exchange will help people get familiar with investing in the Romanian real estate market.
"Since so far most of the opinions on Romania’s real estate market have been grounded mainly on rumours or personal opinions, we want this index to offer the people interested in this dynamic market an objective analysis tool to gauge the price developments and future market trends," says Colliers International Romanian Residential Manager Ilinca Paun.
BREI would be divided into eight secondary indices monitoring the developments in prices in the six departments of the city, the old flats in the blocks of flats built before 1990 and in the residential developments of the past years.
Each district is broken down by quarters and for each quarter transactions are selected that will meet a weighted computation algorithm based on money for value.
The reference year for BREI will be 2005. The index will be released quarterly.
The BREI index has been built by a team of Colliers International consultants and analysts coordinated by Calin Bucur, who over the past eight months has focused on understanding the price mechanisms for flats in Bucharest City and also on devising computational formulas for the index that would accurately reflect the weight of sales in certain areas of the city and according to property types.
"We ended with an index that is grounded on a European capital stock price formation formula and that also takes into account sales volumes and weights in certain areas, as well as the supply of new flats," says Bucur.