Are you ready for 2020? Here’s how the prices were in 2019

After 2019 brought with it increases of 20-25%, it is expected that 2020 will either calm the turbulent waters in the real estate field or add to the value of prices. Many experts also characterize current prices as unrealistic, even at the level prior to the Financial Crisis of December 2007. However, analysts certify that now the context is different from that period and that the danger of a new financial crisis is almost non-existent. In fact, the concrete message refers to the growing demand that has led to rising real estate prices.

Cluj was the first city to exceed in 2019 the value recorded before the crisis of 2007, surpassing in prices including the capital. Analysts believe that this year will bring a decrease in demand for housing compared to previous years. One of the reasons are the changes in the conditions for accessing funds through the national Prima Casă credit program. Moreover, it is estimated that by 2020 the budget available under the program will be reduced.

Negative start
In January, at national level, about 30,000 real estate sales were registered, 30% less than in January 2019. Bucharest enjoyed the exception to this rule. These decreases are attributed by specialists to the high housing prices, but also to the change in lending conditions.

The same report 2019-2020 also contains the number of building permits, which indicates the increasing caution among developers of residential complexes.

To see the offers on the Romanian real estate market, access Flatfy.ro, the search engine that includes most of the ads with apartments and houses for sale and rent in the country.

The Flatfy search engine is an objective, innovative and comfortable site, where everything is organized simply and clearly, thus saving clients search time. It is oriented to the consumer's need. Another plus is the fact that the search engine for real estate in Romania can be accessed both on the computer and on the tablet and mobile phone. For example, you can find apartments for sale in Timișoara directly from your phone.

Thus, the beginning of the year keeps the downward trend from December 2019, at which time there were approximately 30% fewer transactions registered compared to November. The involution of real estate transactions was caused by the increase of ROBOR last year and by the Romanian National Bank’s (BNR) intentions to change the lending conditions within the Prima Casă program. Therefore, buyers were scared of the evolution of interest rates and decided to postpone the purchase of properties, which led to lower demand.

New residential complexes are raising prices
In other words, the increase in prices can also be caused by the construction of new housing units and residential complexes. Being built mainly in large cities and areas with high potential for economic development, they bring new standards in terms of housing. However, not infrequently, buyers prefer homes in old residential complexes to the detriment of new ones.

Homes in old, more expensive blocks of flats
According to a study conducted by Flatfy.ro, for January 2020, the average price per square meter for apartments located in old blocks of flats is higher than that of new homes. Thus, the average price/sqm in a new residential complex in Bucharest is 1,070 euros, while for old real estate it is 1,150 euros. The situation repeats itself in other important cities, Cluj-Napoca, Timișoara, Constanța and Iași. The biggest difference is registered in Cluj-Napoca, where the average price/sqm for a new home is 1,200 euros, and for old apartments it even reaches 1,400 euros.

Housing prices in 2020
The real estate market for new properties and the secondary market are being constantly compared using a series of methods. In the case of real estate, the minimum price per square meter, received directly from the developer, is used.
The secondary market is built on the collection of ads from at least 1,000 real estate sites. When estimating averages, we do not use duplicate ad groups, but we use the entire ad base.

Thriving cities attract investments
Cluj-Napoca remains one of the most thriving cities in 2020. According to a study conducted by the World Bank in collaboration with the European Commission, 15.32% of respondents said they would move to the city on the river Someș. The next city in terms of attractivity is Bucharest with 14.46%, while on the last step on the podium is Timișoara with 11.88%. Cluj-Napoca continues to attract investors and citizens due to the quality of life, health services, dynamic artistic cultural environment, but especially due to the pharmaceutical and IT industry.

In Romania, the construction of new real estate complexes is more and more common, especially in cities with potential for economic development. According to the official data of the National Institute of Statistics (INS), in the first part of 2019 there was an increase of 7.6% in the number of authorizations for the construction of residential buildings compared to the same period in 2017.

Advice for buying a home
The main problem that arises when buying a home is the choice of its type. The choice must be made according to your needs and budget. Among the options we can list: an apartment or a house in an old or new residential complex.
New residential complexes offer several advantages: modern compartmentalization to use the space in the most efficient way, long lifespan, adaptation to new trends, which will lead, in essence, to increased convenience. However, in many cases the residents of the new residential complexes complained about the quality of the construction and the fact that the partition walls are too thin, with no sound insulation that should prevent the noise made by neighbors.

If the apartment is located in an old block of flats, you can ask the homeowners association for a history of monthly maintenance payments and you also have to make sure that the owner has no arrears. Find out what year the block was built. Those built after 1980 will show greater resistance to earthquakes.

Do you want to know the latest news about real estate in the country? Korter.ro is a search engine for new real estate, a comfortable choice for finding residential complexes in Romania.

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