Rise of apartments prices in Romania cooled down in June

The evolution of the residential market in the first six months of 2018 confirms expectations for a slowdown in price rises. The imobiliare.ro portal index shows that, after a 1.2 percent decrease in June, the average asking price is at a value of EUR 1,200 per sqm. This figure is only 3.1 percent higher than the one recorded at the beginning of the year, a growth rate slower than in the same period last year, according to Business-Review.eu.

For comparison, in the first half of 2017, apartment prices increased on average by 6.7 percent nationwide (to EUR 1.120 per sqm). It should be noted that the highest growth rate in the first half of this year was recorded in Brasov.

Last month, claims from apartment sellers in Bucharest increased slightly, 0.4 percent, from EUR 1,328 to EUR 1,333 per sqm. That made the value registered at the end of June 5.9 percent higher than the one in early January. This growth is very close to the one recorded last year, namely 5.4 percent. The prices in Bucharest have so far had a more moderate growth rate than other cities (Cluj-Napoca or Timisoara), and higher revenues and demand here are perceived as being able to absorb rises. The growth trend in the first half was mainly supported by new apartments, whose average value exceeded EUR 1,400/sqm at the end of June.

The downward trend in price increases is by far the most obvious in Cluj-Napoca: if in the first half of last year the apartments available for sale in the city have risen by no less than 10 percent, this year the pace growth is half. Apartments in Cluj-Napoca remain the most expensive in the country, with an average value of EUR 1,522 per sqm, at the end of June. Both analyzed market segments experienced a moderation in the rhythm of rises. The average asking price for the old apartments reached EUR 1,553 per sqm, and the new ones at EUR 1,492 per sqm.

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