These costs, which presently account for 8.5 percent of the final price of a home, amounted to €60/square meter two years ago, reaching €110/sqm in 2007. Officials of the Eurisko real estate consultancy company estimate a €40/sqm increase in 2008.

The reason for this increase is the fact that two years ago homes were built unprofessionally, said Ionut Bordei, Eurisko Partner. Competition is now forcing developers to find innovative solutions in terms of architecture and marketing models used for promoting projects.

"Costs vary significantly, depending on the home or complex being built. In the case of a residential complex, marketing expenses can rise to as much as 5 percent," according to a statement to Business Standard by Robert Teodorescu, Manager of the Residential Sales Department of the Regatta real estate consultancy company.

According to the Colliers International real estate consultancy company, in 3-4 years Bucharest will deliver the same number of homes as Warsaw does now, namely an annual 12,000. One square meter in Bucharest now costs €1,500, compared to €2,000/sqm in Warsaw. Real estate brokers are expecting a constant price rise on the short and medium-term.