REAL ESTATE MARKET REPORT
« 2010 - 2011 »
After two years of economic crisis in the real estate sector, 2011 finally brings positive signals. The rise in the number of transactions, which started with the last months of 2010, is expected to continue this year but the only thing that could jeopardize the real estate market is the credit lock. The year 2011 could mean the end of this credit lock if the real estate sector gets support from the banks.
By looking at the report, you'll notice that the real estate market was partially unlocked, with transactions seeing an increasing trend. On the other hand, in Prahova Valley, the real estate market is becoming clearer and shows an increasingly stable and reliable price value.
This market report was created by specialists from Mervani (www.mervani.ro) and refers to the real estate activity held in 2010, in Prahova Valley.
PRAHOVA VALLEY MARKET FOR 2011
As we predicted since the middle of 2010, despite the economic crisis, the Romanian real estate market, in particular the Prahova Valley market, begins to show signs of revival. After three years of real estate decline, the number of transactions is starting to grow (by 14% compared to 2009).
After examining the transactions from 2010, we noticed that 45% were long term rentals and and 55% were sale contracts. Most transactions were recorded for apartments (53%), followed by houses/villas (31%) and land (16%).
In terms of cities, we found that 31% were in Sinaia, 29% in Campina, 14% in Breaza and the rest of 26% distributed as follows:
The most "active" months of 2010 for Prahova Valley were March and November with an equal share of 37%, closely followed September with 16% and June with 14%. April and May are the only records with a percentage of less than 3%. The remaining months share a percentage of 29% as follows:
When we looked at the trading value, we noticed that the average price for apartments is around 45,000 euros, showing a decrease (by negotiation) of over 6% from the original price. Houses and villas have an average price of 210,000 euros with room for negotiation of over 7%, in favor of the buyer. Lands have an average of less than 70,000 euro, enjoying the biggest margin of negotiation registered at more than 9% of initial average price.
A very interesting thing noticed by our specialists is that an increasing number of local investors are investing in real estate, thus, by analyzing the client's city of origin we noticed a very high percentage (41%) of clients who reside in the same city as the estate and an almost similar percentage held by clients from Bucharest (43%). Cities like Constanta and Craiova, which were usually the main source of investors, now share the same percentage as foreign clients, roughly 2%.
Below we will do an analysis, in terms of prospects (buyers who have had at least one viewing during the year 2010) and in term of interest shown by visitors of www.mervani.ro
During 2010, according to data analyzed by Mervani, we recorded 924 requests, 91% for purchase and only 9% for long term rental.
In terms of the cities of origin, more than half come from Bucharest, 27% come from Ploiesti and Prahova Valley, while the rest of 1% are from Baicoi, Braila, Brasov, Comarnic, Craiova, Ialomita, Iasi, Ilfov, Izvorani, Poiana Campina, Alexandria, Azuga, Bacau, Baia Mare, Bistrita, Bucov, Calafat, Calarasi, Campulung, Cluj Napoca, Cornu, Costinesti, Drobeta TS, Floresti, Mangalia, Moroieni, Navodari, Oltenita, Otopeni, Ovidiu, Pitesti, Provita, Recas Scorteni, SINGAPORE, Slatina, Suceava, ITALY, Targu Neamt, Targu Mures, Valenii de Munte, Vrancea and Zimnicea.
The busiest month in 2010, according to the number of views, was August, which occupies a percentage of over 15% of total registered views, followed by September and July, each occupying a percentage of over 10%. The least requested months are January and May, white the rest are according to the schedule below:
If we refer to categories of property, we noticed a major interest in lands, followed by houses and villas with a percentage of 37.04% and flats/apartments with a percentage 22.43%. Commercial spaces remain the least requested category in Prahova Valley.
In terms of views for long term rentals, the situation changes radically, thus, 46.51% of those views were for studios/apartments, 33.72% were for houses/villas, 17.44% were for commercial spaces and only 2.33% were for land.
The most sought estates (for buying) during 2010 were lands (Breaza, Comarnic and Busteni), houses (Brebu, Breaza and Campina), apartments (Sinaia, Busteni and Campina), villas (Busteni, Sinaia and Breaza), studios (Sinaia and Azuga) and commercial spaces (Predeal, Sinaia and Campina).
The most sought estates (for renting) during 2010 were apartments (Sinaia and Campina), villas (Sinaia and Busteni), commercial spaces (Campina and Sinaia), houses (Campina and Breaza), studios (Sinaia and Campina) and lands (Campina and Breaza).
Of the 16 cities analyzed in this report we can see that a percentage of over 10% of all views realized in 2010 with the scope of purchase is occupied by Sinaia, Breaza, Busteni and Campina while Brebu, Telega, Mislea and Bobolia are under 1%.
Only five cities are interesting in terms of requests and views made for rentals, thus, Sinaia and Campina have a total of 88.37% with the rest of 11.63% being divided between Busteni, Azuga and Breaza.
In terms of average prices, we noticed the fact that, during 2010, some estates sparked the interest of potential buyers: studios with a cost between 30,000 euros and 35,000 euros, 2 bedroom apartments with prices below 50,000 euros, 3 bedroom apartments with prices below 60,000 euros, old houses with prices below 70,000 euros, small lands with prices ranging between 35,000 euros and 40,000 euros, villas and commercial spaces with prices over 200,000 euros.
WEB TRAFFIC ANALYSIS FOR www.mervani.ro
WEB TRAFFIC ANALYSIS PROVIDED BY THE "Google Analytics" SYSTEM
The following analysis was made during 2010 for www.mervani.ro and it's based on a total of 1,959 estates. A percent of 8% is represented by rentals and the rest of 92% is represented by estates for sales.
From the chart shown above we notice that the largest percentage is covered by land (47%), followed by houses & villas with a percentage of 29%, apartments & studios with 15%, apartments in condos with 5% and commercial spaces with a percentage of 4%.
To make this analysis perfectly accurate, one must take into account the number of bids registered on each of the 21 cities covered by the agency's database. The cities with the highest number of offers are: Sinaia, Campina, Busteni and Breaza, each with share of over 10%. The areas with very low offers are Rasnov, Bran, Tohanu Nou, Mislea and Urleta, the newest entrants in the agency's database.
We also noticed that most studios/apartments are located in Sinaia, houses in Campina, villas and commercial spaces are found in Busteni and lands are in Breaza.
If we only take into account the sale offer (1,804 estates), we notice that the average number of days when these deals are displayed on the site is 719 (almost two years), each offer being displayed an average of 2037 times, respectively 3.07 hits per day. Comparative and general situation of rental offers can be seen in the table below:
If we refer to the same situation, distributed by city, we obtain the following results:
If we analyze the bids, in terms of average price results for each category of property or city, we notice the following situation:
PRICE SITUATION BY CATEGORY OF BUILDING:
APARTMENTS IN CONDOS
AVERAGE PRICE/SQM BY CATEGORY
PRICE/SQM FOR STUDIOS:
PRICE/SQM FOR APARTMENTS:
PRICE/SQM FOR VILLAS:
PRICE/SQM FOR HOUSES:
PRICE/SQM FOR COMMERCIAL SPACES:
PRICE/SQM FOR IN-LANDS:
PRICE/SQM FOR OUT-LANDS:
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