I very clearly refered to the new developments in areas like Pipera and Tunari and to many other such developments around Brasov, Cluj, Sibiu, Timisoara, Iasi, etc, etc, etc. The country is too full of them.
No the price of properties in the centre of Brasov will not slump because the price per 1 sq. m. was and is still a very good one (1500 - 2000) whereas in Bucharest 5000 means they have reached their peak and will not go up any further if they are in central area. It is ridiculous to ask for a property in Bucharest more than for a similar one in Hague, Paris or Prague. Simple, common sense issue.
I agree there is undersuply in Bucharest, nevertheless whatever it's being built there and will go on to be built in the area is not covering the real demands of the locals with few exceptions. If your office is on one side of the city and your residence in some village on the other side of the city, you will spend between 2 and 3 hours to go to work and 2 and 3 hours to get back from work, because Bucharest has a mess of an infrasturcture, to many cars, too less parking spaces and a shabby public transport.
Bratislava shows prices of over 5000/sq. m because you can actually bike to Vienna and many offices moved from Vienna to Bratislava and also despite the massive new development they have a smooth infrastructure, decent public transport and parking facilities.
So as long as the authorities are not establishing some rules re building in Bucharest and don't put money in developing the public transport and the infrastructure, asking 5000/ 1 sq. m. even in the centre of the town is pure madness.
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Originally Posted by David howe
I do not totally agree with what you say or perhaps I have misinterpreted.
I agree the market has slowed, but the reason for this is the amount of land comodity transactions have now diminished thereby reducing numbers. Apartment sales are also down.
However, I disagree that well located existing properties will fall in price and still continue to drive on. The main losers will be the new properties the market makers have create an illusion of Growth on when in fact these properties have actually grown so much in price that many are now worth what the UK and Irish agents sold them for, not the artificial price these agents said they had grown.
As for the crash you speak of do you honestly think the good stuff in the center of Brasov will crash or do you refer to the new stuff on the peripheral?
Certainly good existing in Bucharest has not fallen in price and rental yields are up. However, if people have bought wrong in terms of location, size and price then it is a natural reaction that they do not benefit from a good investment and it is their recklessness to blame not a failing market.
Also what you say in relation to economy slowing I totally agree with, but these problems are global not just applicable to Romania. The strong point that Romania and especially Bucharest is the fact that there is an under supply of good properties in the market.
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