Land prices in several areas in Bucharest dropped by as much as 15 percent, because speculators who purchased plots in recent years are no longer making expected earnings, and are willing to negotiate prices, according to real estate consulting companies.
Several developers have confirmed this trend.
Neighborhoods located in semi-central and peripheral areas of Bucharest have already registered lower prices. "The largest land sale price drop was 20 percent,” according to CB Richard Ellis-Eurisko’s consulting company Valuation Department Manager, Adrian Nicolescu.
Real estate companies say land prices peaked last year, so owners are now compelled to lower prices to sell their land.
"Currently, there are many plots of land up for sale and little demand. We have clients telling us we can offer discounts of up to 20 percent on sales,” DTZ Echinox Consultant Daniel Mitarcu, quoted by Business Standard, said.
Buyers are no longer speculators but real estate developers, consulting companies say.
Developers are carefully calculating construction costs and cannot afford to acquire land at skyhigh prices. According to Coldwell Banker Affiliates of Romania’s Residential Department Manager, Razvan Stroescu, the decline in prices can occur in any area of Bucharest where prices are unjustifiably high.