Investors’
interest for land in Bucharest-Ilfov County increased in 2011, as a
result of falling property prices for these areas.
According to IMOPEDIA.ro statistics, the number of website visitors interested in built-up areas rose by 28% in 2011, more than the previous year.
According
to an IMOPEDIA analysis, in October, November and December, the index
measuring drawn interest or attraction to the place reached its highest
value, 49% in October and November, and 64% in December, higher than
the same period of 2010. In November, 61.000 visitors searched for
information about this type of landholdings.
"The
interest for land follows a positive trend, quite stable, which is not
influenced by external factors, such as the First House governmental
buying program,” said Razvan Muntean, general manager IMOPEDIA.ro.
In
2011, the interest of foreign buyers return from a decline upon the
implementation of the First House Program imposed in early 2010.
However, since the policies had been altered, it encouraged foreign
investors to take a look once more in Romania's property markets.
Property prices continue decline
The
rising number of potential investors had been brought by property price
declines in the last two years. IMOPEDIA.ro specialists say that they
had been expecting this situation.
A
medium price fall in 2011 compared to 2010 was registered in Corbeanca,
where the plots of land from the incorporated area devaluated by 10%,
while the land from unincorporated area – by 15%. Even at the end of
2009, one square meter within the built-up area would have been bought
with EUR 130, but in 2011, the same square meter was valued at EUR 95.
For the unincorporated area plots, one square meter was valued at EUR 17
at the end of 2011, which is EUR 28 less than the same period of 2009.
In
Mogosoaia, the cost of one square meter within the built-up area
decreased by 14% compared to 2010 and by 36% compared to 2009. The
medium price went from EUR 110/m2 in 2009 to EUR 60/m2 in 2011. The
price for unincorporated area lands also subsided during this time, with
20% less in 2011 than in 2010 and 67% less in 2010 than in 2009.
A major decrease has been noticed in Otopeni plots
as well, where one square meter within the built-up area would have
been bought with EUR 72 at the end of 2011, EUR 13 less than the medium
price at the end of 2010. Compared to December 2009, the cost of one
square meter in Otopeni is EUR 98 cheaper.
The
medium price in Berceni Sat area registered a drop of 20% for the plots
within the built-up area and 40% in incorporated land, reaching only
EUR 3/m2 price.
"At this point, land from the surrounding areas of Bucharest
can be purchased at an extremely low price once again, but this doesn’t
necessarily guarantee the quality of property. Cheap land means, in
most cases, that the plot is very far from the main road, that you do
not have access to asphalt, that the energy and utilities are not even
close-by. Of course, exceptions are found when owners find themselves
forced to sell their land and then accept prices below the real value”,
added Mr. Muntean of IMOPEDIA.ro.
Areas outside Bucharest
In
Chitila, the costs for unincorporated area dropped 40% at the end of
each year, starting with 2009. If in December 2009 the plots of land
were valued at a medium of EUR 45/m2, in December 2011 they were valued
at only EUR 15/m2. Also, the medium price for one square meter within
the built-up areas decreased by 21% compared to 2010, reaching EUR 55.
In the Popesti-Leordeni
area, there was an 18% decline for the incorporated areas and a 33%
drop for the unincorporated surfaces. The medium price for the
incorporated area was EUR 45/m2 and EUR 20/m2 for the unincorporated
surfaces.
The situation is similar in Voluntari as
well, where the price decreased by 33% within the built-up area and by
18% for the unincorporated area. The medium value was EUR 70/m2 for the
best plots of land and EUR 20/m2 for those in the second line.
In
Cernica, in December 2009, one square meter would have been bought with
EUR 150/m2 for incorporated areas and EUR 60/m2 for unincorporated
ones. Until the end of 2011, though, the lands’ value halved, decreasing
to EUR 60/m2, respectively EUR 18/m2.
Land price for the Magurele area
decreased by 27% in the first plan and by 40% in the second line. The
medium price reached EUR 33/m2 for the incorporated areas and EUR 3/m2
for unincorporated surfaces.
In
Pipera, the price decline was 17% for the incorporated surfaces, after
decreasing by 37% in 2010. At the end of 2011, the medium price for one
square meter in the first plan reached EUR 100 and EUR 50 for the
unincorporated area.