Bucharest - 13 noiembrie 2013
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The release of the latest developments of the Residential Property Index is announced by Eurobank Property Services (EPS). The new issue includes the third quarter of 2013, totalling more than eight complete historical years’ fully covered by the indices.
The third quarter issue of the EPS residential index of Romania supports previous indications of prices stability on the national market, recording a small quarterly reduction in prices (-1.6%) but totalling a slower than -1% slide of the prices since the same quarter last year (y-o-y) and a 1.6% rise since the beginning of the year. The components of the national index, including the divisions of the country and the large cities also appear to generally vary in harmony with the national aggregate, without major exceptions standing out.
The index of Central Bucharest recorded the lowest historical price during the current term, after recording a quarterly price drop of -6.6%, somewhat lower than the previously lowest level recorded in the 4th quarter of 2011. The drop in prices is in line with the expected tendency versus previous period of time. For instance, the price of the current term is -10.7% versus the same quarter of the last year (y-o-y) and had a drop of -9.9% since the beginning of the year. On the contrary, prices of Bucharest Ring remained stable this term (0% q-o-q) and rose by 2.6% since the same term last year (y-o-y), with only a small drop of -0.3% recorded since the beginning of the year, corresponding to the first 9 months of the year. The movement of prices in Ilfov County was similar to that of Central Bucharest but even steeper, in the sense that it also recorded a low historical price, resulting in a drop of -7.6% q-o-q and a -3.3% price fall during the last year y-o-y, while the largest decrease was recorded for the first 9 months of the year at -14%.
The North division presents the strongest residential price performance with positive quarterly and annual growth and by far the slowest 5-year price reduction of -2% per annum, whereas the second place in 5-year performance is shared by Moldova and the West divisions, both at -7.8% per annum. The 4.7% one-year price growth of the North division is second in rank, after Muntenia with 7.2%. The highest increase in the first 9 months of the year was registered by South division with 6.9%, while Muntenia and West have a similar evolution, showing consistency of their performances.
The indices of the larger cities of Romania have also fluctuated around the national pattern of stable price levels, without remarkable exceptions. Similar to the previous term, Galati and Ploiesti presented superior quarterly and one-year performances to those of the remaining large cities; however, they can both be well attributed to short term noise and corrections, without any evidence of a diversifying trend. A similar conclusion can be drawn about the lowest performance of the big cities indices group, such as Timisoara, Braila and Craiova, which appear to be correcting from previous fluctuations towards the national average performance.
A similar outlook of limited variation arises from the sectors of residential properties monitored by the EPS indices. Flats are the sole index with positive albeit small quarterly growth this term, at 2% for Bucharest and 0.2% nationally. Combining this with the stronger performance of the Bucharest Ring one can conclude that flats in the Ring's zone were the main engine of residential price growth in the Capital recently, whereas more speculative properties in the Central Bucharest and in the suburban zone of Ilfov County have not been at the target of the demand for the time being. On the axis of property age, old properties appear to have provided more price growth than the new ones, both in the Capital, where they remained stable (-0.1%) versus price fall of -1.8% of new properties, and nationally, where the index of old properties fell by -1.6% versus a fall of -5.4% of new properties.
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:
Eurobank Residential Index Quarter