Wave of Price Collapses Reaches Luxury Home Market

The end of the year and the global economic crisis, which eventually found its way to the Romanian real estate market, have caused price cuts even on the segment that initially appeared to be the least vulnerable: luxury residential properties. Thus, the price of properties that are absolutely unique in terms of both location and architecture has decreased by as much as 50%. Representatives of the real estate company EuroMetropola believe that the phenomenon is not widespread. "We can definitely not speak about a decline in the price of exclusivist property. These are just some opportunities. Generally, whose who have this kind of property for sale would wait for the prospective buyer to make an offer and negotiate on it. Of course, everyone understands the global context and, even though it does not favour the sellers, many of them refuse to lower the price at their own initiative because they are afraid it would be perceived as a sign of weakness." According to a press release, a villa in Dorobanti with a built surface of 450 sq.m. and 380 sq.m. of courtyard is now available for 1.7 million EUR, from an initial price of 3.5 million EUR. Thus, the price cut is 52%. Nonetheless, EuroMetropola believe that the price reduction in this particular case has nothing to do with the crisis as the owners are in a hurry to sell because of personal reasons. In fact, very few owners will admit having a real cash problem in order not to allow prospective bidders to realize they have the upper hand in the negotiation. Another villa, in Cismigiu, with 540 sq.m. of built surface and 250 sq.m. of courtyard is available for 750,000 EUR, down by 40% from the initial price. Although several bids were placed to rent the building, which is suitable for office space or for opening a restaurant, the owner insists on selling it as soon as possible. A four-room apartment in Primaverii is now available for 1.65 million EUR, down by 25% than initially. A house in Primaverii, measuring 500 sq.m. built surface, 550 sq.m. courtyard and a swimming pool is now available for 4 million EUR, down by about 1 million EUR from the initial price. EuroMetropola representatives also exemplified with a villa in Lascar Catargiu, of 700 sq.m. built surface and 400 sq.m. of courtyard, whose price has been reduced from 2.5 million EUR to 2.1 million EUR.