Apartment prices: November 2016 versus November 2015

Apartment prices: November 2016 versus November 2015

Timisoara and Cluj-Napoca registered the most significant increases.

Despite changes and challenges in the financing sector, we may conclude that 2016 has been a good year for the residential market. Apartment price evolution attests to that. According to real estate portal Imobiliare.ro, the nationwide medium asking price for an apartment (both existing and newly-built) is now 1,044 euros per usable square meter – which amounts to a 8.3% increase compared to a year ago (when the index averaged 964 euros per square meter). During the month of November, prices went up by 0.2% (from 1,042 euros per square meter at the end of October 2016). Some of the large cities, however, including the capital, were faced with slight decreases this past month.

In Bucharest, apartment values went down by 1.1% in November, from 1,141 to 1,129 euros per square meter; the current value is 3.1% higher compared to the one a year ago (1,095 euros per square meter). The decline in the past month was fueled exclusively by the newly-built sector, which registered a drop of 2.5% (from 1,198 to 1,168 euros per square meter), while units in old blocks appreciated by 1.1% (from 1,062 to 1,074 euros per square meter).

In Brasov, the medium asking price for an apartment is now 901 euros per square meter, that is 0.8% lower than at the end of October (when it was 908 euros per square meter) and 3.4% higher than 12 months ago (when it averaged 871 euros per square meter).

In Cluj-Napoca, owners' expectations rose by 1,7% in the past month, from 1,222 to 1,243 euros per square meter; compared to the same time of 2015, when an apartment was valued at around 1,126 euros per square meter, the current value is 10.4% higher.

In Constanta, prices decreased by 0,2% in November (from 957 to 955 euros per square meter), but are now 4.7% higher than 12 months ago (when an apartment was listed for sale at an average of 912 euros per square meter).

In Iasi, apartment values went down by 0.6% in 30 days, from 900 euros per square meter to 895 euros per square meter; the current value shows a 3.8% increase year-on-year, from an average of 862 euros per square meter at the end of November 2015.

In Timisoara, asking prices increased by 0.7% the past month, from 1,029 la 1,036 euros per square meter. Sellers' expectations are now 10.6% higher compared to the same time frame of 2015, when they only reached 937 euros per square meter.

Adriana Lefter – Imoland Expert Consulting