The next wave of real estate opportunity in Bucharest will be in the south of the city, forecasts Romanian property consultancy EuroMetropola.

The south represents good value and will attract development activity away from the North, where prices have 'become too high,' it believes.

"There are many investment opportunities in the southern area of Bucharest and there are many promising urban development projects for that area, including shopping centers, an airport and even a port," Valeria Coroianu, co-ordinator of EuroMetropola's Residential Department, told Bucharest Business Weekly.

The recovery of the real estate market in general, however, was linked (unsurprisingly), to developments in the financial markets, Coroianu stressed.

"The recovery of the residential market in 2009 depends on the stabilisation of the global financial markets.

"In the middle segment, the residential market is not controlled by sellers or by buyers, but by banks.

"Things will improve in 2009 if the offer diversifies in the middle-low market segment," Coroianu added.

Speculative transactions were now almost all a thing of the past, she said.
Land prices had started to come down from a price high in July 2008 and were down most severely in September when they came down 35 to 45% in some areas.

Coroianu added that currently prices in north Bucharest stand at around €500, between €1,500 and €2,000 in Baneasa, between €2,000 and €5,000 psm in Victoriei, with a maximum of €8,000 psm in Primaverii and Aviatorilor.

In south Bucharest land prices are up to around €150 psm on the outskirts, and in Rahova, Berceni and Giurgiului the prices range between €600 and €1,800 psm up to a maximum of €2,000 psm in areas closer to the centre, such as Calea Vacaresti.

In the West of the city, land prices range between €250 psm and €2,200 psm, while in districts, such as Fundeni, Pantelimon and Titan, the prices are between €800 and €2,000 psm.

* Data from the Romanian National Statistics Board (CNP) forecasts the country will experience much thinner GDP growth in 2009 - just 2.5%, compared to a 7.9% in 2008. CNP's forecast for 2010, however, is growth of 4.5% and 5.5% for 2011.

Robin Bowman