The real estate market has plunged again this summer, afterhopes about a market rebound had emerged.After asking prices hadmaintained above 90,000 euros on average for a three-room apartmentsince May 2009, in August the average price dropped to 87,000euros, according to the ZF real estate index. Public sector salarycuts, announced layoffs and the VAT hike have hurt the market thissummer.
The decline against last August amounts to 10% and against January2010 to 7%. Last autumn, prices did not go down by much, they evenrose slightly in some months against previous months, propped bythe First Home governmental programme.
The Bucharest average is still high as in some areas prices gobeyond 100,000 euros in full crisis.
Bucharest old three-room apartments are selling at almost half theprice asked before the crisis, the ZF index reveals.
Since the collapse of Lehman Brothers US investment bank inSeptember 2008, average prices for three-room apartments inBucharest have dropped from over 140,000 euros to 87,0000 euros atpresent.
There are analysts saying there is still room for further declines,but owners and real estate agencies cannot imagine the market candip any further.
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