Of the total 168 real estate projects started in the 2006-2008 period in Bucharest, 8,861 homes were to be delivered in 2009. Until the end of June, developers delivered only 3,319 homes, or 37% of the total number of units due for completion this year, Regatta said.
According to Regatta, 202 real estate projects have been announced between 2006 and 2009 in Bucharest, totaling around 121,936 homes, of which only 10,633 units had been delivered since 2006, of which nearly 5,000 are still for sale.
In the second half of last year and the first half of 2009, housing sales dropped significantly in Romania, couple with a slowdown and ultimate decline in construction works.
Real estate consultants said the local residential sector was deeply affected by the financial crisis in the past period, despite still high supply and demand.
The highest price drop was recorded for old apartments, Regatta said, where the owners lowered the price by up to 40%-45% compared with the same period a year earlier.
On the other hand, in September and October, the price of old apartments rose by up to 30% after the government launched the „First Home” program granting up to EUR60,000 state guarantees for mortgage loans to people buying their first home and who did not previously benefit from a mortgage loan.