Loading ...Flats worth 3.3 billion euros await clients in the 3rd edition of the 'Condominium' International Real Estate Fair, reads a release remitted to the editorial office.
As many as 83 Romanian residential centers would be presented during this year's edition, along with real estate investment offers from Bulgaria, Greece and Germany.
'There is a growing demand of flats in Bucharest, a level of around 15,000 to 20,000 flats per year for the next 10 years, with flats making up over 80 per cent of the yearly real estate transactions in Bucharest,' Gabriel Zamfir, the President of the National Real Estate Union (UNIM), said. The price of a bachelor's flat showcased in the 'Condominium' starts from 47,000 euros without VAT, while a penthouse apartment with four or five rooms could reach 1 million euros. Also, holiday flats on the Bulgarian coast could be bought for prices ranging from 59,000 euros for a studiot to 652,000 euros for a penthouse flat.
Over 14,000 flats (most of the flats in the Fair) are currently built in Bucharest, the remaining 9,000 units addressing the visitors who want to buy a holiday or permanent residence flat at the seaside, in the mountains in Prahova Valley or in various locations around Bucharest, locations where over 6,300 flats are being built, for a total value of 1.5 billion euros.
The real estate market is currently affected by the large number of offers, a number that surpasses by far the demand level. Consequently, price stagnation is expected over 2008-2009, a period that is also set to witness the first bankruptcies of real estate developers, UNIM President Gabriel Zamfir, said during the launch of the 'Condominium' International Real Estate Fair on October 16.
'Currently the demand is outstripped by the offer so we could expect price stagnation in the following period. At the same time the old flats' market would also stagnate or even fall, being tightly connected with the new flats' market' Gabriel Zamfir added. He pointed out that bankruptcies of real estate developers are also expected, because of the large number of project that would not manage to find buyers in the following years.
'Today a lot of new real estate offers are popping up for the medium to borderline superior segment, while there is a very large demand on the accessible segment of the real estate market.
And that happens although most of the clients are the same, and they would either be unable to buy because of the high prices, either they would give up buying altogether' Zamfir added. Although analysts have estimated a significant real estate market growth at the start of the year, the monthly sales level fell below expectations. Nevertheless the sales registered a good level when it came to plots of land.
'The real estate market should have grown by 20 per cent in 2007, in what concerns the final consumer, but the growth was much smaller. One could not say the same about the sales of plots of land, a segment that registered a considerable growth. Or about the rent market in some areas around Bucharest where the growth was significant,' Zamfir added.
The 'Condominium' Fair is due on Oct 18 – 21 at the Palace Hall.
The 'Condominium' Fair is due on Oct 18 – 21 at the Palace Hall.
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