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Evolution of the residential market in the provinces this year

The residential market in the provinces has a selling rhythm a little more alert than the one in the capital this year, but there are also failures, according to the representatives of Century 21, a network having 15 real estate agencies in the whole country. The majority of buyers in the provinces preferred to wait for the apparition of several residential projects, wishing to make a better decision. The buyers analysed the evolution of the market in the capital and learned to wait for different offers, thus they could obtain the best tradings, Marius Mihai, managing partner Century 21 Ploiesti.

Both in Bucharest and in the provinces, the number and volume of tradings went down this year. “ The process is normal in the context where since ‘90s and up to the beginning of this year, prices in the real estate sector went up continuously: no other market in the world had the same evolution” Adrian Sischin, regional manager of the real estate agency Re/Max said. However, comparing the residential projects in the capital to those in the provinces  they sell much quicker. Among the reasons at the foundation of this situation could be the more accessible price as compared to that in Bucharest, and secondly, the offer more restricted than in Bucharest, Marius Mihai said. The province is a dynamic market, where new neighbourhoods sell at about 60% as projects as the prices could be 15-20% lower, according to Mihai. However, at present, the trend to acquire a residence as a project is going down.

"Up to now, the majority of residences were acquired as projects, in a general "rush" for residences. In the meantime, the number of residential units has grown, some of them have delivered a product under the promised standards and the buyers learned from these experiences and, at present, they have more options and they have started to choose residences almost finished" Adrian Sischin, regional manager of the real estate agency network Re/Max explained. As regards prices, this year there will be drop in the provinces similar to the one in the capital of 15-20% consider specialists. The going down may be even higher in some cases. The Re/Max offices in Bacau, for example, expect drops of 30% in the price of old apartments until the end of the year. But in this case, an important role plays the projects for new buildings which have grown in number over the last period.

The phenomenon could not be applied to luxurious properties. "For villas, I don’t think there will be drops in prices; luxury properties are slow at reacting at price going down, as the demand is very high and this segment is not so sensitive to the loan policy, as compared to the medium segment” Adrian Sischin explained. Contrary to the opinion, the evolutions on the real –estate market are favourable on a medium term, Sischim believes. "The drop in old apartment prices will bring their price at a level corresponding to their value in time, which will refreshen the dynamic sales on this segment. At the same time, in the case of new apartments, the growth of the offer will determine the developers to deliver more and more competitive residences, and the luxury market will keep its growth” Adrian Sischin said. In the case of Prahova county, it is estimated that by the end of 2008 prices in old apartments and houses built before 1980 will drop by 10%, according to Mihai.

At a national level,during  the first quarter of the current year there were finalized almost 11,000 residences, 50% more than in the previous period of 2007, Adrian Sischin said. However, according to the published data, the deficit of residences in Romania will be covered in 30 years, if they keep the present evolution rhythm on the constructions market, Sischin added. In Bucharest, for example, the necessary number of residences is over 300,000 and on a medium term only some ten thousands are to be ready, without a finite date of delivery. In Timisoara, they expect 2,000 – 3,000 residences until the end of next year, but the necessary number is over 10,000 and the examples could go on, Sischin considers. There are many big cities which expect the delivery of a number of some thousands residences each: at a total, almost 20,000 residences to be built in Arad, Bacau, Constanta, Cluj, Iasi and Timisoara.

Sursa: http://www.actmedia.ro

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