Bucuresti - 28 ianuarie 2014
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Eurobank Property Services (EPS) is announcing the release of the latest developments of the Residential Property Index for the Romanian Market, covering the fourth quarter of 2013 and the annual indices for the entire 2013. The EPS Residential Index includes historic data starting from 2005 until present time.
The EPS Residential Index of the 4th quarter of 2013 maintains the indications of price stability of the national market noticed during the previous issues, recording a small quarterly rise in prices of 0.4% (q-o-q). The quarterly national price index of the final quarter of 2013 has increased by 2.3% in comparison with the same quarter of 2012 (y-o-y), providing an additional indication of a potential reversion of the previous sliding trend of prices. The annual index for 2013 continued sliding at a similar rate as the previous year (circa -1%), referring to the average change of the whole year's prices compared to those of the previous year.
The quarterly index of Central Bucharest rose sharply in the last quarter. Although quarterly fluctuations are not unusual in this leading market, the one-year change is 5.6% (y-o-y), suggesting that a rising trend may have been established. Quarterly index rise was also recorded in Ilfov County, resulting in a positive result over the last 4 quarters. However, continuing falling indices were recorded in Bucharest Ring, at an annual rate of about -5%, resulting in an overall reduction of prices of about -3% in Bucharest & Ilfov Region, in line with the evolution recorded during the last 4 years.
The national divisions of the index generally remain close to the movement of the nationally average prices, with variations that separate them into two groups, those with a rising and those with a falling trend. Moldova and North enjoy positive one year rising trends, whereas the last quarter figures are also rising. The price indices of Muntenia and South also rose in the last 4 quarters, although the last quarter recorded small reductions. The remaining areas remain close to stability.
Regarding the Romanian large cities, the evolution was of a similar manner to the previous quarter. Ploiesti maintains the smallest average 5 year price reduction and recorded a rising trend in the last 4 quarters, despite a small fall of the index in the last quarter of 2013. Oradea was the only one to record a larger one-year price growth compared with Ploiesti, of 5.6%, and an even steeper quarterly rise. On the other hand, Timisoara remains the city with the largest 1-year price fall, albeit the last quarter evolution was less spectacular, whereas the remaining cities present evolutions close to those of the national index and to the stability recorded during 2013, even if the last quarter growths were more hectic and probably influenced by statistical noise.
Out of the property types specific indices, the prices of Bucharest flats have fallen faster than the national pace, by about -5%, whereas the national flats recorded a decrease of -1%. The prices of new properties have risen by almost 6% in the last year in Romania, but not in Bucharest, while old properties have increased only by 2%, a similar behaviour to the last quarter’s evolution. Overall, after almost 6 years of decrease the following sliding phase of prices has given indications of slowing down with potential stability in the majority of the markets of the EPS index set and some signs of potential rises, although more time is needed in order to confirm the end of price reductions and the start of sustainable upwards price trends.
Eurobank Property Services S.A. is a subsidiary of Eurobank group. Established in June 2005, as an integrated service centre, the company offers total real estate solutions. Eurobank Property Services has developed a vast network in the Romanian territory, operating from its Head Office in Bucharest. Eurobank Property Services has managed to maintain its competitive position among the top real estate companies in Romania, by developing an important portfolio of customers including banks, with Bancpost being the main client, public institutions, real estate funds, foreign investors, local real estate development companies and private companies.
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Cuvinte cheie:
EPS Residential Property Index