The market crash, just a memory?

For at least three years now, the domestic market is on an upward trend in housing prices, even if the growth rate differs from case to case. A study by Imobiliare.ro compares the current price level in the major cities of the country with the minimum values ​​recorded during the recession. In September, the average demand for newly-sold apartments - both new and old - rose by 1.9%, from 1,141 euros per square meter at end-August to 1,163 euros per square meter of useful. According to Indexel Imobiliare.ro, the current price is 30.5% above the lowest value since the beginning of the crisis, namely 891 euros per square meter useful (in December 2014). The most significant advance from the bottom of the market took place in Cluj-Napoca - thus fueling once again the view that this market is in danger of overheating. Bucharest: In the capital, apartment seller claims increased overall by 0.3% in the past month, from 1,250 to 1,254 euros per square meter of utility; compared to the lower market threshold reached in February 2015, when such a housing unit costs 1,034 euros per square meter, the difference is 21 percent. In September, old dwellings appreciated by 1.6% (from 1.154 to 1.173 euros per square meter of utility), and the new ones by 0.3% (from 1.315 to 1.319 euros per square meter useful). Brasov: In the city at the foot of Tampa, the Imobiliare.ro Index recorded, cumulatively, an advance of 2.8% in September, from 952 to 979 euros per square meter of utility; the current value is 21% higher than the minimum level reached on the Brasov market in 2008, respectively 806 euro per square meter (July 2014). In the past month, old apartments rose 1.7%, from 966 to 982 euros per square meter. However, the newly built dwellings recorded a monthly advance of 5.2%, from 924 to 972 euros per square meter of utility - however, they are 0.3% cheaper than 12 months ago (when reaching 975 euros per square meter useful). Cluj-Napoca: In the capital of Transylvania, the expectations of new and old apartment owners alike rose 2 percent in September from 1,426 to 1,455 euros per square meter. Cluj is, by far, the city where homes are the most expensive compared to the bottom of the market, the current value being nearly 78% higher than the lowest point reached in January 2014, respectively 818 euros per square meter. Last month, the dwellings in the old blocks in this city appreciated 3.3% (from 1.459 to 1.507 euros per square meter of utility) and the new ones by 0.8% (from 1.379 to 1.390 euros per meter square useful). Constanta: In the seaside town, the average asking price for new and old apartments available for sale rose 0.7% last month, from 1,055 to 1,062 euros per square meter of utility; compared to the bottom of the market, respectively 839 euros per square meter (reached in December 2013), the current level is 27% higher. Over the previous month, old homes increased by 0.9% (from 1,054 to 1,063 euros per square meter), but new ones were slightly cheaper, 0.1% more accurate (from 1,059 at 1,058 euros per square meter of useful). Timisoara: The capital of Banat is the only one of the big cities analyzed in which apartment prices fell in September: it is a 0.4% overall rebound, from 1.134 to 1.129 euros per square meter. Compared to the minimum market point of 776 euros per square meter (reached in October 2012), the current value is about 45 percent higher. In the first month of this year, the old town apartments depreciated by 0.2% (from 1.132 to 1.130 euros per square meter), and the new ones by 1.4% (from 1,143 to 1,127 euro per square meter useful).