COLLIERS INTERNATIONAL "First Home" program had no impact on the prices of old apartments in Bucharest

Tradus de Cosmin Ghidoveanu
Ziarul BURSA #English Section / 7 iulie 2009

A.T.

The launch of the "First Home" program did not significantly impact home prices in Bucharest in the month of June. Even though there are rumors that apartment prices have gone up lately, judging by BREI numbers, (real estate index calculated by "Colliers International" for Bucharest homes) it would seem the market status remains unchanged. According to a press release sent to our editors, BREI numbers for June show that prices seem to be stabilizing.

The value of BREI-Vechi (index for old apartment prices) for the month of June is EUR 1.126/sqm, close to May"s value of EUR 1.131/sqm. "Colliers" experts say that 2-room apartments were slightly affected by the new program, because sellers were not willing to negotiate their asking price, and the sellers recently entering the market were asking for higher prices. However, these niche trends did not affect the overall average price month over month. A slight rise of BREI-Vechi is noticeable in districts 2, 5 and 6, whereas the same index dropped slightly in districts 1 and 4, while prices in district 3 remained steady.

"Colliers" advisors claim that all of Bucharest"s districts have seen slight price increases in some areas. After successive drops and a lack of active buyers, many owners have taken their apartments off the market and refused to lower their asking price any further.

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