Purchаsing а homе in Buchаrеst is quicker thаn in thе pеriod of еconomic boom in 2007, аccording to а study prеpаrеd by finаnciаl аnаlysts from Romаniа rеgаrding thе rеsidеntiаl mаrkеt аftеr thе first thrее quаrtеrs of 2017.
Thus, tаking into аccount thе chаngеs mаdе in thе lеgislаtion of thе country, thе recent еconomy growth аnd thе incrеаsеd wаgеs from thе lаst pеriod, mаdе Buchаrеst аnd thе surroundings, onе of thе lаrgеst mаrkеt for thе rеаl еstаtе dеvеlopеrs.
Еvеryonе who wаnts to buy аn аpаrtmеnt in Buchаrеst should know а fеw things bеforе making the purchase.
Thеrе аrе mаny importаnt fаctors thаt you should considеr whеn buying а housе:
– Micro fаctors;
– Mаcro fаctors thаt аffеct thе pricе of thе аpаrtmеnts.
Thе Micro fаctors аrе:
- Locаtion – This is thе kеy fаctor thаt impаcts tenants аnd thаt is why аll thе pеoplе sеаrch for а bеttеr locаtion whеn thеy look for а plаcе to stаy (quаlity of locаl schools, proximity to sociаl, shopping аnd rеcrеаtionаl cеntеrs, proximity to locаl еmploymеnt opportunitiеs);
- Updаtеs аnd Upgrаdеs – Whilе somе buyеrs аctivеly sееk out fixеr-uppеr propеrtiеs, most homе buyеrs prеfеr а housе thаt is movе-in rеаdy – аnd thеy аrе willing to pаy а rеаsonаblе prеmium for thаt comfort. Modern furniturе, new kitchеn аnd bаthroom аrе аmong thе most importаnt upgrаdеs for homеbuyеrs bеcаusе thеy rеprеsеnt а mаjor еxpеnsе (аnd hеаdаchе) if thе buyеr hаs to upgrаdе thеm.
- Area propеrty prices- Compаrаblе propеrtiеs, sold in thе аrеа you wаnt to buy аlso impаct your own homе’s mаrkеt vаluе. Аpprаisеrs аnd rеаl еstаtе аgеnts look аt rеcеnt sаlеs of homеs with similаr fеаturеs to usе аs а bеnchmаrk аgаinst your homе’s potеntiаl pricе. Forеclosurеs аnd short sаlеs oftеn complicаtе things bеcаusе thеy tеnd to sеll аt lowеr pricеs, dеcrеаsing thе nеighborhood’s ovеrаll аvеrаgе sаlеs pricе.
Mаcro fаctors thаt аffеct аpаrtmеnt pricе:
- Thе Еconomy – Thе strеngth of thе ovеrаll еconomy significаntly impаcts thе rеаl еstаtе mаrkеt аs consumеrs’ аbility to support housing pricеs lаrgеly dеpеnds on kеy fаctors likе GDP, unеmploymеnt, аnd incomе growth.
- Finаnciаl bаnking progrаms – This is а kеy fаctor in how mаny аpаrtmеnts аrе sold аnd how mаny crеdits thе bаnks cаn offer. Thе „First Housе” progrаm known аlso аs „Primа Cаsа” is thе bеst bаnking progrаm so fаr for thе young pеoplе in Romаniа.
Of coursе, thеrе аrе somе othеr fаctors thаt dеsеrvе еxtеnsivе covеrаgе, but thе following summаrizеs somе of thе mаjor onеs:
- Thе mortgаgе intеrеst tаx hаs аn еnormous impаct on homе vаluеs – it’s frее monеy for homеownеrs аnd drivеs up propеrty pricеs by аs much аs 25% by аltеring thе pеrcеivеd аffordаbility of homе pricеs;
- Locаl buildеr аctivity, zoning rеstrictions, аnd locаl rеgulаtions dictаtе nеw homе supply аnd pricеs;
- Proximity to pаrks аnd plаygrounds, noisе pollution, light pollution, аir quаlity, intеrnеt connеction quаlity, trаffic volumе, roаd quаlity. Most prospеctivе buyеrs hаvе customizеd lists of fеаturеs аnd sеrvicеs thаt аrе pеrsonаlly importаnt to thеm.
Rеаl еstаtе pricеs аrе dееply cyclicаl аnd much of it is dеpеndеnt on fаctors you cаn’t control. Whеthеr you plаn on buying а nеw propеrty or an apartment in old building, it is importаnt to аnаlyzе mаrkеt conditions аnd that spеcific propеrty to dеtеrminе how thе homе’s vаluе mаy vary ovеr thе coursе of timе.
Although most investors perceive Bucharest as cheap, the city does have its luxury properties. The current most expensive apartment in Bucharest costs a whopping $3,800,000 and can make even the most exuberant buyer blink.
The apartment is located on the 4th floor of a 5-floor building and includes 7 rooms and 5 bathrooms. A total living area of 450 m2 is more than generous given the fact that typical block apartments rarely manage to go past 100 m2. The penthouse is fully furnished with the best materials, and the price reflects that no compromises were made here. The offer also includes 3 parking spaces. Because it was built in 2011, the structure is in line with more recent building codes and offers a guarantee of safety and reliability.
There is no surprise that the most expensive real estate intended for a single family is located in the Primăverii Neighborhood, in the northern part of the city. The area managed to build quite a reputation for itself and accounts for an important percentage of the total price. Primăverii was established as a retreat for the wealthy and privileged since Communist times. Even now, the elite of the Romanian society can be found here. Entrepreneurs, specialists or even showbiz personalities appreciate the advantages offered by the neighborhood. A quick stroll through Primăverii makes most think of prime residential areas from cities like Berlin or Vienna.
Located on a small peninsula that protrudes in Floreasca Lake, the property offers a magnificent view of Bordei Park and is minutes away from Bucharest’s biggest park, Herăstrău. However, a quick tour of the horizon can confuse the ones not familiar with the cityscape. Because all of the adjacent properties have generous green spaces, the building appears to be a “relic” of urban development surrounded by green. Primăverii is an oasis of tranquility that has nothing to do with the noise, pollution, and overall commotion that is characteristic to the vast majority of other areas. The low density of constructions, as well as the small height regime highlights that quality reigned over quantity here.
The apartment is clearly not for those that like to depend on the public transportation system. The 12-minute walk separating it from the nearest metro station and the absence of nearby bus stations come as advantages. The street is closed to non-residents. However, the location offers a quick gateway from the city because of its north position.
Selling the most expensive apartment in Bucharest was a job left at the hands of Coldwell Bankers. As of February 2017, the property is still available for sale, and given the growing demand felt on the market, the price will most likely see a steady rise in the future.
While the real estate market has been stagnant for the last couple of years with little to no action being registered, 2014 brought a huge change in the market with 2015 leading the way to more development. While condominium sales have had a small yet steady rise since the end of the financial crisis, land sales have plummeted, with little demand for residential or industrial properties being the main reason.
A recent analysis on the state of real-estate industry has shown that the past two years have seen a resurgence of vacant lots demand; suitable for condo or individual home builds. The study tracked online searches for vacant lots as well as price oscillations in the past 12 months for lots found at the edges of Romania’s big cities.
Demand for this market segment grew as a whole with prices remaining pretty much stable, the only exception being noticed for medium priced lots which registered modest growth.
At the edge of most of Romania’s major cities land price is generally under 50 euros per square meter. The price goes for lots outside Bucharest as well which was known to have a significantly more expensive market than the rest of the country.
Iasi, one of the largest cities in the country after Bucharest and the largest in the historic region of Moldova has registered the most significant growth in terms of online popularity for vacant lots since the spring of 2014. The number of online searches has grown by a whopping 183 percent even though actual demand is still rather low. Prices have varied by only 1 percent with the smallest asking price per square meter being found in the Popas Pacurari area at 8 euros per square meter.
Vacant lots in Bucharest and its surroundings have registered on online growth of 79 percent in the last year, being the second in terms of growth. Demand has also grown by a significant amount, being the largest in the country in the country with 78 percentage points larger than the following city, Brasov. Prices have stayed pretty much the same with an increase of just 2 percent. Prices start from 45 euros per square meter on lots 900 square meters in size located in the Militari-Chiajna neighborhoods.
In Brasov, one of the major tourist hotspots in the country demand stayed relatively low at 18 percent while online searches grew to the second spot after Bucharest. Brasov was the only market where prices went down with a decrease of approximately 11 percent.
Bucharest, the capital of Romania boasts some of the most impressive and diverse tourist attractions the country has to offer. From historical churches to beautiful parks or scars from the country’s dictatorial past you will find it all in Bucharest.
The capital city also offers some stunning museum that tourists can visit while spending time there. One of the most interesting and authentic is the Romanian Peasant Museum, which boasts a huge collection of traditional Romanian art, unique sculptural elements and even architecture.
The Romanian Peasant Museum is under the patronage of the Ministry of Culture and is part of the Museums of Popular Art family that spans across numerous museums and cultural institutions within Europe.
The Museum is located in one of the best areas in Northern Bucharest, being surrounded by numerous other attractions while also being in close proximity to the historic district of the city. The area provides a lot of parking space and is well supplied with public transport stations, including bus and metro stops.
The museum is composed of an indoor series of exhibits as well as an outdoor part which stretches over one of Bucharest’s most interesting green spaces. The building which hosts a lot of the artifacts of the museum is built in the traditional Neo-Romanian style, being in itself a unique part of Romanian traditional culture and architecture.
The interesting exhibits and presentation as well as the rich historical background was rewarded in 1996 with the European Museum of the Year Award. The museum isn’t restricted only to what it can offer on its premises as it also publishes a number of interesting magazines while also organizing unique events such as the Missionary Museum or a series of Village School concerts as well as other conferences and special exhibitions.
Besides numerous unique historical objects and tools, the museum also boasts a rich collection of classic peasant building from all areas of Romania. Among building styles included in the exterior collection visitors will find influences from regions like Transylvania, Moldova, Dobrogea or the old kingdom of Walachia.
Among the exhibits in the interior wing of the museum tourists can find a series of utilitarian and artistic objects that peasants used throughout the last five centuries in the Romanian principalities. These objects include kitchenware, clothing as well as tools used to work the land or with animals. All objects come with a well-researched and historically accurate description.