Apartment prices continue to drop. Will Prima Casa 3 bring a change?

Old and new house prices in major Romanian cities still fell three percent in October, reaching a new threshold, said in an analysis of portal imobiliare.ro. One factor that can could change the downward trend in prices is the Prima Casa 3 program.

As in September, prices of apartments in the Country have dropped by another 3% in October, up to 1070 euro / sqm, 34 EUR / sqm less than the month's precedent, according imobiliare.ro portal.

In Bucharest, home prices fell 1.4% last month, up to 1176 euros per square meter for new & old apartments, reaching a new threshold since the beginning of the crisis.

"Monthly price declines of around 3%, seem to become a rule. Currently, there is no evidence to suggest that the market discounts would stop here. However, an external factor in direct ratio between supply and demand, such as a lifting of the ceiling of any government program to guarantee a First Home 3 might end this trend, "says Adrian Erimescu, general manager imobiliare.ro.

Home prices continued to decline in major cities, such as Ploiesti, Brasov, Timisoara and Cluj-Napoca, Constanta is the only exception, where prices rose by 1.1% in October.

Thus, in Ploiesti old and new apartment prices fell by 3.6% last month, up to 920 euro / sqm.

And the average price asked for Brasov apartments for sale was down 0.8% last month, up to a value of 887 euros / sqm usable area. "In a surprising combination of factors, developed residential apartment prices in Brasov rose by 5.2% in October, up to 935 euro / sqm. With regard to old apartments, the price requested by the owners in October, reached an average of 885 euros / sqm, which was 1% less than in previous months, " the report states.

In Cluj-Napoca, after four months of consecutive growth, apartment prices fell 3.3% in October, up to 1004 euro / sqm, recording the biggest drop this year.

In Timisoara apartment prices fell by almost two and a half percent. up to 802 euro / sqm, which still ranks first in the top gallery of cities with the cheapest apartments in the country, according imobiliare.ro.