Wednesday, September 3, 2014

Bucharest, Pitesti and Slatina top the cities with most accessible apartment prices

Residential complex Maresal Averescu superstructure
One year from launching the financing version in lei of „Prima Casă“ programme, the accessibility of dwellings in Romania has visibly improved, while the prices have remained constant, Capital writes. The daily newspaper compiled a top of the cities with most accessible prices.

In determining the accessibility degree of a dwelling financed by loan, three variables must be analyzed:  value of the dwelling, loan cost (monthly installment) and level of revenues (to set the ratio of the installment within the revenues – the indebtedness).

Residential complex Maresal Averescu superstructure
In the first half of this year, the top of cities that provide access to the lowest indebtedness for the acquisition of a two room apartment has changed. At the moment, Piteşti, Bucharest, Slatina, Târgu-Jiu and Sfântu Gheorghe top the city ranking, while six months ago Alexandria, Sfântu Gheorghe, Slatina, Reşiţa and Bucharest ranked on the first five positions. 

The change was mainly triggered by the wage fluctuation and in some situations by the adjustment of the average transaction prices.  Piteşti and Bucharest have been the most dynamic cities in this period, climbing from the 6th and 5th positions to the top of the ranking. Today, the average Bucharest earner can easily realize that the 244 euro/month installment that he or she has to pay for an old two room apartment is under the level of rents demanded by owners for the same type of dwelling, the acquisition of an apartment being more advantageous.  

Residential complex Maresal Averescu
The dwelling price annual wage ratio is placing Bucharest on the 10th position, while Sfantu Gheorghe, where the index is 6.3, ranks first.

On the opposite side, Oradea, Suceava, Buzău, Focşani and Vaslui are the cities where indebtedness is the highest in the country. In these cities the prices have stabilized at a relatively high level and the income has not recovered the difference.  For instance, the average price per sqm of an old apartment in Oradea is 16% lower than in Bucharest, but the average wage is half of Bucharest average wage.

National priceshave dropped significantly from mid- 2008 until today. Old buildings have registered a decline of approximately 40% and the prices of new apartments have dropped 33%.

Residential complex Titeica
What is interesting is the fact that during the past year the share of new dwellings, built between 2008-2014, in the loans granted through „Prima Casă“ programme increased to 37%. Real estate consultants have noticed a visible bounce back of new apartment sales after the improvement of the access to real estate loans and price cuts applied by real estate developers in the past years. 
OCTAGON involved in the construction of residential projects

Residential projects have not had a major share in the portfolio of OCTAGON CONTRACTING & ENGINEERING, but the company was involved in the construction of several residential projects over the years, within which it performed civil and geotechnical works.

Residential complex Titeica
OCTAGON built the concrete structure of three residential buildings, diaphragm walls and bored piles D 600, for the residential complex Maresal Averescu 159.

Within the residential complex Tineretului Hills, located on Pajistei St. in Bucharest, OCTAGON executed diaphragm walls D 600 m, h = 13, top beam 60 X 100 m, bored piles and retaining walls.

For the residential complex Titeica, located in Bucharest, on 206- 208 Titeica Road, OCTAGON  built diaphragm walls D 600 mm, h = 14 m, micro piles D 178 mm- 125 ml and sheet piles.

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