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Over 14,000 new dwellings on sale in eastern Bucharest

As many as 14,215 dwellings have been put for sale in eastern Bucharest, with prices per sq m ranging between 1,236 euros, plus VAT, in Theodor Pallady area, and 1,582 euros, plus VAT, in Vitan area, reads a recent study of real estate consultancy company MediaCity.

The market research has taken into account new residential complexes announced so far by developers and which still have dwellings not sold yet.

The finishing deadlines cover the period 2008-2012. As many as 1,811 dwellings are expected to be ready by the end of 2008, they are included in 11 residential complexes. 6,639 dwellings are announced for next year, in 16 residential developments, and 3,065 more are expected to be ready in 2010.

The constructions underway now are generally made on plots of land bought in the previous years, for much lower prices, which makes it possible for developers to build under conditions of profitability. For example, a plot of land in Titan neighbourhood for which 200 euros/sq m were paid three years ago, can be bought now for 1,500 euros/sq m.

The research also reads that in the case of developers thinking now to start new real estate projects, in new crediting conditions, banks can possibly no longer assume an investment risk, especially if the projects are large-scale ones. So, developers are in a situation to reinvest a large part of the profits made from previous projects, thus becoming their own investors.

'Developers continue to be active in the real estate market in Romania as long as they preserve a profit margin from sale of more than 30 percent, ' general manager MediaCity Andrei Sandu believes.

MediaCity considers that for eastern Bucharest, the prices are still good for the developer and the buyer alike, with the buyer having to choose between buying a new apartment or one in an old building, which is sold in the area for 1,550 euros per sq m, on the average.

Sursa: http://www.rompress.ro

Tags: dwellings euros eastern bucharest

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