Prices for dwellings in Romania down 40 pct

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Prices for dwellings in Romania recorded a drop by 10-40 percent (expressed in lei) in the first quarter of 2009, compared with the figures in end-2008, Evenimentul zilei daily reads on Tuesday.

In the case of the old apartments on the market, the average drop stood at 23 percent, while in the case of the new ones the drop stood at 17 percent, according to estimates by the evaluation company Darian Rom-Suisse.

If, in almost all the cities nationwide, the price for old dwellings dropped more than the one for new dwellings, except for the prices in the northern city of Baia Mare, where the price for new dwellings fell by 35 percent, while the price for old dwellings dropped by only 25 percent.

In Bucharest, there was recorded a slump by 33 percent on the old dwellings segment and by 25 percent on the new dwellings segment, compared with values in end-2008.

‘Romania remains thus a state characterized by paradoxical statistics. Although more than 80 percent of the Romanians own real estate properties, the demand maintains at very high values.

An explanation could be the accelerated migration from the rural area to the urban one, with people who already own a property in the rural regions moving to the cities, where houses are much more expensive,’ the authors of the study said.

Another aspect was represented by the cultural factor specific to the peoples’ need to own the space in which they live and also their poor education related real estate investments, say the Darian specialists.

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