Residential properties’ prices to stagnate in Romania as Prima Casa is phased outThe prices of the residential properties will stagnate next year, as the programme of state guarantees Prima Casa is phased out, according to a research conducted by real estate consultancy firm RE/MAX Romania in partnership with real estate platform imobiliare.ro. The research admits that the demand is rising, though. As demand invigorated, house prices rose in Bucharest and regional centers: Cluj-Napoca (by less than 1% to an average of 1,500 euros / sqm), Iasi (+2.9%, from 1,016 euros / sqm to 1,045 euros / sqm), Timisoara (+0.3%, from 1,200 euros / sqm to 1,204 euros / sqm). By 2022, particularly the properties located in key areas of the first-tier cities will increase significantly, according to the research. The government will reduce by 25% the guarantees extended under Prima Casa, a programme that has played a key role in the residential real estate market but also for the financial intermediation. On the upside, the ROBOR benchmark market interest rate, at least for the 3-month maturity, is expected by the authors of the research to remain below 3.5%.

The prices of the residential properties will stagnate next year, as the programme of state guarantees Prima Casa is phased out, according to a research conducted by real estate consultancy firm RE/MAX Romania in partnership with real estate platform imobiliare.ro.

The research admits that the demand is rising, though. As demand invigorated, house prices rose in Bucharest and regional centers: Cluj-Napoca (by less than 1% to an average of 1,500 euros / sqm), Iasi (+2.9%, from 1,016 euros / sqm to 1,045 euros / sqm), Timisoara (+0.3%, from 1,200 euros / sqm to 1,204 euros / sqm), according to Romania-Insider.com.

By 2022, particularly the properties located in key areas of the first-tier cities will increase significantly, according to the research.

The government will reduce by 25% the guarantees extended under Prima Casa, a programme that has played a key role in the residential real estate market but also for the financial intermediation. On the upside, the ROBOR benchmark market interest rate, at least for the 3-month maturity, is expected by the authors of the research to remain below 3.5%.

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