Inhabitants of Iaşi not willing to pay more than EUR 40,000 for older apartments

• The real estate market seems to have thawed in May

Doru Mocanu, Iaşi

The number of real estate transactions involving both plots of land and buildings in Iaşi increased approximately 20% in May over April, based on data published by the Cadaster and Real Estate Advertising Register (OCPI) Iaşi. Thus, the number of transactions concluded increased by 250 in May to 1,482, compared to the 1,239 transactions concluded in April. A first for OCPI Iaşi was the registration of 689 new buildings and 385 mortgages. In spite of all this, the number of real estate transactions in the month of May remains far lower compared to 2008. Only 1,482 transactions were concluded in May 2009, compared to the 1,892 transactions completed in May 2008. The number of mortgaged buildings was also higher in May 2008 (1,172), as was the number of new building registrations (1,193).

The situation presented by OCPI Iaşi is also confirmed by officials of realtors in Ia i, who say that the market seems to have gotten a shot in the arm since April. Eliza Neamţu, official of realtor "Fidelia Casa", said: "The market seems to be recovering slowly, and the "First Home" program will have a beneficial effect. We are already seeing requests from younger people looking to buy an apartment. Still, so far the market has lived off sales of cheaper, smaller apartments. Studios sell best right now".

Mrs. Neamţu says that the most people in Ia i are willing to pay for a home is around EUR 35,000. "Transactions involving land however were more problematic, as the market was extremely slow", she added.

In turn, Emil Ştefănoaia, manager of "Terra Real Estate", said: "The increased number of transactions was almost entirely fueled by smaller, cheaper apartments. Two-room apartments which cost at most EUR 45,000 were the best sellers. For instance, we had on offer a three-room apartment with an asking price of EUR 55,000 that we couldn"t find any buyers for". Mr. Ştefănoaia claims that these last few months, he has encountered situations where owners would ask half of the price they were asking last year because they needed cash.

According to data from OCPI Iaşi, 49,585 realty transactions were concluded in the first five months of 2009, with 11,338 transactions concluded in the month of May alone (6,513 transactions involved plots of land and constructions, 4,369 first-time building registrations, and 1,705 mortgages).