The Romanian real estate market continues to grow, fuelled by the wide gap between supply and demand, particularly on the residential segment, reported ZF.ro.
However, the increased rate of prices also raises questions for real estate consultants. "The Romanian residential market is constantly increasing, and within the next five years, developers will continue to launch new residential projects. For the time being, the only factor of concern should be the prices, which are rapidly rising, and it is impossible to say how high they will reach," says Beatrice Dumitrascu, Head of Project Accounts within the Eurisko consulting company.
The situation on a number of foreign markets, where properties have been overvalued and prices have started to drop, has also brought into question the value of flats on the local market, which have seen price increases of 400-500%, and even higher, over the last few years.
The Telegraph, a British daily newspaper, reports that house prices on the overheated European markets have started to see a fast decline and are beginning to duplicate the initial stage of deterioration of the subprime mortgage loan sector in the USA, and that the decline could also occur in Romania. However, real estate consultants on the domestic market do not rule out a price reduction, at least within the next few years.