Eurisko: Housing prices will not go down

The prices of housing in Bucharest will not decline this year, given that costs entailed by the development of real estate complexes have gone up, due to the increase in the price of land and in labour costs, but there will be corrections for housing facilities whose prices are excessively high, believes real estate company Eurisko. As for the depreciation of the RON, it will affect housing prices by a mere 1-2%. “There aren’t any reasons that could cause home prices to go down. The price increase will be smaller, but there will not be a price decrease, by any means, considering the costs of developing a real estate project, which are affected by the increase in land prices and in construction work costs. For prices to go down, construction work costs need to go down,” said Ionut Bordei, a partner with Eurisko. According to him, half of the offer of old housing units is artificial. “I am talking about people who don’t really want to sell, but ask for outrageous prices. The real market consists of those who sell old apartments in order to move into new ones,” explains Bordei.