In Romania of 2010, the medium-income segment of the population will benefit from the strong development of the residential sector.
Real estate developers will be coming up with projects for the areas in which authorities have announced investments in infrastructure.
The price of a flat in the old blocks of Bucharest has already reached a level of around 1,000 euros per square metre, very close to the level of houses in the residential complexes for the middle class, of around 1,500-2,000 euros.
In the case of luxury flats, prices will soar from 3,000-3,500 euros per square metre to about 4,000-4,500 euros per square metre.
"As long as the supply in communist blocks is lacking and blocks under construction are destined to the medium and luxury class, prices for flats will continue to rise," states Bogdan Georgescu, managing partner with Colliers real estate company.
Major developers of residential projects are already entering the residential market, with hundreds of new flats for each developed project to be put onto the market.
At present, there are few Romanians living in modern residential complexes, and major developers are focusing on large projects in this area, say real estate market players.
The domestic market''s potential is similar to that of Warsaw and superior to that of Prague or Budapest, according to the representative of Colliers.
Demand for flats on this segment by 2010 is put at 25,000-30,000 new flats, and the major projects that have been announced will supply only 10,000 flats, according to the estimates by some consultants.
The real estate market will see a stratification of supply and demand over the next five years, once major projects are launched, particularly for the segment of people with medium incomes, where the supply has been almost inexistent, states Bogdan Georgescu.
As regards the industrial and office sector, the potential will reside in the relocation of production facilities in Bucharest to other locations close to the capital city. catalin.lupoaie@zf.ro
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