Bucharest residential property raises towards Western European prices
In spite of the bad press in newspapers and negative comments raised on real estate forums about the high prices of Bucharest luxury residential developments and their affordability for the medium class, ongoing real estate projects are being entirely sold months before being finalised. Yes, it is true, Romanian developers and ongoing projects are far from satisfying the needs of the medium class, but no, the market for luxury housing in Bucharest is far from saturated
To give a brief example, the luxury My residence real estate project was 90% sold seven months before the end of the project. The assembly, situated near the posh Herastrau Park area, is a rather small project, including only 120 apartments with areas between 100-200 sqm. Due to the desirability of the location, the prices vary, but only within the higher limits - between €1500/sqm and €1800/sqm depending on the floor level. The project was started in March 2006 and it is due to finish later on this year in September.
Another example is Green Lake residential complex which, according to the latest press releases, was sold completely for €7.82millions. The project included 12 villas with a built area of 620 sqm on rather generous 850 sqm land plots (typical land plots for villas in the vicinity of Bucharest are around 500-600 sqm). The price of a villa was in average €620,000 and the last one was sold for €1million (yes, no typing errors, one million euros).
It is fair to argue that some of the transactions for these projects may be speculative ones, due to buyers paying an initial deposit, with some of them taking advantage of promotional offers to, and hoping for the market to rise by the time the development is finished and ready for occupancy. Nevertheless, no such stories surfaced in the press so far and, even with prices rivalling the Western Europe real estate market, as the ones above, Romanians’ appetite for new housing seems unstoppable.
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Posted: May 21st, 2007 under Property Development, Reviews.
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