Rising prices for flats and villas

The prices of the flats and villas in Bucharest will go up 10%-30% in the next two or three years, both in terms of sales and rents, Liana Dumitru, a broker with Colliers International’s Residential Department said. “Estimates are valid for both sales and rentals,” Dumitru told an economic seminar. She explained the price of a flat in Aviatorilor or Dorobanti areas is 1,000-1,500 euros/sqm, while the price in the Scoala Herastrau area ranges between 900-1,300 euros/sqm. At the same time, the price of a flat in the Baneasa area reaches 600-1,000 euros/sqm. “Demand is very high in northern Bucharest as the area is developing in full gear,” Dumitru said. She added the real estate market in Bucharest was seeing a more obvious preference for new flats and villas as compared to the older flats built in the ’70s. The Colliers official said the residential market in Bucharest had been following an upward trend lately, prompted by the overall economic growth and the higher purchasing power. Real estate analysts expect to see the prices of the flats in Bucharest go up by no more than 15% this year. ZF