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Old apartment price may drop 20-25 pc in Bucharest

Regatta: Bucharest’s ten most expensive flats on the market are worth approximately EUR 8.5 M

The prices of old Bucharest apartments may drop by 20-25 per cent, the General Manager of the Magazinuldecase.ro portal, Matei Malos, told a press conference yesterday, according to Rompres. According to him, the supply of old apartments in Bucharest in 2008 grew three times compared to 2004. According to the latest analysis presented by Malos, the price of old apartments went up by 158 per cent from January 2006 to January 2008. The growth was supported in 2007 by the relaxation of the mortgage credit. According to the analysis prepared by the Magazinuldecase.ro, the number of old apartments on the market in Bucharest (studios, one and two-bedroom apartments) is now three times higher than in 2004, with an increase by over 25 per cent every year compared to the previous year. The most important growth has been recorded this year when, according to the assessment, the growth arte doubled compared to the period January – March 2007. The 10 most expensive apartments on sale in Bucharest are worth around EUR 8.5 M, according to a classification put together by Regatta. The first position is taken by a place in Dorobanti for which the asking price is EUR 5,000/ sq m, Mediafax informs. The prices of the ten most expensive luxury flats range from EUR 2,400 and 5,000 / sq m, and are calculated according to the constructed area of the building, location, utilities and architecture, reads a Regatta press release. On the other hand, the volume of the main property transactions in Romania dropped in Q1 by 68 per cent, to EUR 119 M, in the context where the European property market lost 37 per cent in the same period, dropping to EUR 38.7 bn, according to a report issued by Cushman & Wakefield, Mediafax informs. Property transactions include the sector of office, retail, industrial and hotel space. ‘Price instability, the shortage of credit and the lower confidence of investors have led to the situation where the market can no longer be taken by surprise’ reads a communiqué of the Romanian Office of Cushman & Wakefield. According to the cited source, the most attractive sector in Romania was the office space, with 56 per cent of the funding steered towards the acquisition of this kind of property. By comparison, in 2007, commercial real estate in the total value of EUR 1.88 bn was traded in Romania, all the funds coming from foreign investors. In Eastern Europe, the volume of property transactions dropped in Q1 2008 by 45 per cent compared to Q1 2007. Some of the countries where the volume rose are Finland, The Netherlands and Spain, with a rate between 27 per cent and 39 per cent. Three-star and luxury hotels have the biggest growth potential in Romania The Romanian hospitality market will develop in the next years on the segment of there-star hotels, with the greatest demand in Bucharest and in the major Romanian cities, and of the luxury hospitality chains, Sorin Ionescu, Managing Partner in Fivestar Hospitality Consulting, during a forum dedicated to the hospitality industry held in Bucharest, Mediafax informs. ‘The sharpest growth on the Bucharest hospitality market is in the there-star segment, one that has grown a lot in the last years. The four and five-star hotels in the Capital are not in the same situation, as the supply currently emits the demand’ Sorin Ionescu explained. He said that big cities like Cluj, Timisoara, Craiova or Constanta will become targets for hospitality investment both for the development of luxury hotels and of three or four-star hotels. Capital getting ready for Ritz-Carlton or Regent In two or three years’ time, Bucharest will be ready to welcome some of the best-known luxury hotel brands of the world, such as the Ritz–Carlton or the Regent. For the time being, the market is oriented towards openings like Radisson SAS to meet demand of business travellers of tourists. ‘In two or there years’ time, Bucharest will be ready for a luxury brand like the Ritz and we are seriously considering the development of the concept, but the market needs to be ready for that’ Kurt Strohmayer, CEO of the JW Marriott Grand Hotel, the Ritz-Carlton belonging to the Marriott Group. The representative of the hotel operator Rezidor that will open the Bucharest Radisson Hotel in Bucharest, Susanne Friedrich, stated that another luxury hospitality brand name, the Regent, might emerge in Bucharest in the following years. Sursa: http://www.nineoclock.ro

Tags: hotel property hotels hospitality years luxury growth market bucharest apartments according three price

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