Real estate was one of the industries most affected by the financial and economic crisis, and the Romanian market was no exception. Bucharest, the capital of the country was affected, as well as other large cities, where prices for residential buildings collapsed in the beginning of the year and maintained a descendant trend ever since. Apartment rental prices also decreased, as more and more companies and individuals were affected by the crisis, therefore being forced to downgrade their standards. This trend was recorded in most counties such as Timis, Dolj, Constanta, Prahova, Sibiu or Cluj and it affected the transactions of old apartments, built before 1980, as well as newer buildings.
As the market became stagnant, owners had to re-evaluate their pricing strategy, many of them giving up the safety margin they were usually adding to their desired price, in order to leave room for negotiations. Even so, with all major banks not willing to give mortgages so easily, there were not so many buyers with enough purchasing power, so the transactions volume in the commercial sector dropped by 75% in 2009 compared to 2008. These figures come from a statement made by a Colliers International Romania representative at Zilele Biz conference in November 2009. The same source mentioned that the profit margin for the real estate agencies went down from 25% in 2006-2008 to only 12%-15% in 2009.
This is a sample of apartments rental prices for Ploiesti, Prahova, split by property type and location, as found on real estate classifieds websites in December 2009:
Inchirieri garsoniere Ploiesti (one room apartments):
- Ploiesti Ultracentral: 200 EUR – 400 EUR per month
- Democratiei: 200 EUR – 300 EUR per month
- P-ta Mihai Viteazu: approximately 250 EUR per month
Two room apartments:
- Ploiesti Ultracentral: 350 EUR – 400 EUR per month
- Democratiei: 250 EUR – 350 EUR per month
- P-ta Mihai Viteazu: approximately 400 EUR per month
- Republicii: 350 EUR – 700 EUR per month
Three room apartments:
- Ploiesti Ultracentral: 500 EUR – 750 EUR per month
- Democratiei: 350 EUR per month
- P-ta Mihai Viteazu: 500 EUR – 600 EUR per month
- Republicii: 300 EUR – 700 EUR per month
Four room apartments:
- Ploiesti Ultracentral: 1500 EUR per month
- Democratiei: 500 EUR – 600 EUR per month
- Republicii: 600 EUR per month
Of course, prices for apartment rentals vary not only with the location, but also with the renovation degree and with the furnishing and appliances provided such as dishwasher, washing machine, vacuum cleaner, refrigerator or air conditioning systems. The floor where the apartment is situated may also play a role in setting the price, as many people shy away from ground floor and from the last floor. Discounts may apply in case of long term rental contracts, but this is not necessarily the rule.