Are Romanian property prices stabilising?

The group’s residential property index shows that prices of real estate in Romania reached a “fairly constant” average in the first three months of 2013, reports Romania Insider .

The market displayed slight fluctuations but after a fall in the previous quarter, prices rose slightly to roughly €45,000. Prices in the Bucharest Ring are around €60,000, adds Eurobank’s data, while they climb to €80,000 in Central Bucharest.

Since the 2008 property market peak, prices have plummeted by 51 per cent in the capital, working out at an average of 13.3 per cent each year. Nationally, prices have dropped 33 per cent. In the last four quarters, though, the national price index has slipped by just 1.2 per cent – a comparatively small drop and a positive indicator for the future.

The figures follow a similarly optimistic report from Eurobank Property Service at the end of 2012.

“The annual EPS residential price index for Romania clearly delivers a message of price stabilization, with a national price reduction of only 0.8 percent for 2012, following reductions of about 5 percent for 2010 and 2011,” reported Business Review in February.

Prices in Central Bucharest and the Bucharest Ring fell 4.1 percent and 5 percent respectively in the first quarter of 2013 compared to the previous three months. Residential prices in Ilfov County, though, climbed by 2.4 per cent.

Indeed, on a regional basis, South and Moldova both saw price increases (7.8 per cent and 3.9 per cent respectively) in the first three months of the year. Other areas also saw prices increase, while the cities of Craiova and Oradea saw the highest quarterly rise of over 10 per cent.

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