The current rising demand for new construction units in Bucharest has propelled a keen building activity, Bucharest daily Business Standard reported on March 24.
Present demand for housing came not only from private investors, who are attempting to take advantage of the sustained construction activity, but also from developers and real estate agencies, who were investing in new projects, according to a recent study by real estate consultants Atisreal Romania, the local unit of BNP Paribas, quoted by the daily.
These are acquiring a significant number of homes to re-sell later on the secondary market, once the projects are finalised. The total stock of housing rose last year by 13 623 new units in Bucharest, while in the same period 19 116 homes were built in the Ilfov county, which covers Bucharest's immediate surrounding areas.
In general, the average price of a newly-built apartments in Romanian capital gravitated around 1 400-1 800 euro a sq m. In some cases, the price per square meter differed due to its location within the building. As such, the price of apartments on upper floors could be 10 per cent higher.
According to real estate analysts, quoted by Business Standard, prices would rise by some 15-20 per cent in 2008, one of the reasons being the introduction of value-added tax on real estate transactions.
