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Real estate speculation keeps Bucharest homes empty

Half of the new apartments delivered in Bucharest in 2007 are back on the market.

The new residential developments have become the object of speculation in Bucharest. Almost 2,000 apartments are still empty despite of the very big demand. Many such apartments were bought by speculative investors who put them back on the market pending sale or lease, according to a survey prepared by the Polish real estate consultancy REAS, quoted by Mediafax. The research shows that the investors who initially bought apartments in order to re-sell or let them are asking for very high prices or rents, counting on a big return on their investment. ‘An example is the Baneasa development where two or three-bedroom apartments are offered at rents from EUR 3,500 to 4,000 per month, the same as a villa in the same neighbourhood, with the same utilities. For this reason we can say that the expectations of investors may be too high in what regards the Bucharest property market at present’ the report mention. In the case of the Emerald Residences development in the north-east of the Capital, scheduled to be complete in the very near future, according to data from the developer, only 40 per cent of the 279 apartments are occupied by the end customers. The rest were purchased as an investment. In the opinion of the Polish analysts, the profits obtained in Romania two years ago when there was no competition on the real estate market are not longer possible. ‘Customers now have a larger choice even if the number of new apartments is not that big. The phenomenon will grow in Bucharest as new apartments are finished. Given the fact that, this year, there will be four to five times more new apartments than there were in 2007, the question is how many of those apartments will be dwelled by locals, especially knowing that the outskirts are deprives of infrastructures, and if half of these places will remain empty as well’ the report reads. According to REAS, only 1,500 – 2,000 of the 3,500 new homes scheduled to be on the market were actually ready in 2007. Sursa: http://www.nineoclock.ro

Tags: apartments market empty bucharest estate

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