Some 40% of Bucharest homes are overvalued

Some 40 percent of properties in Bucharest are overvalued, especially old apartments, as housing prices rose artificially in the past few years, according to CB Richard Ellis-Eurisko real estate consulting company's Residential Department Manager, Ionut Bordei.

High demand, easier loans, and poor supply led to a steady rise in prices for both new and old apartments in all areas of Romania’s capital. Furthermore, Bordei indicated that sellers often set the price for their apartments “based on what neighbors said” rather than on the real trading prices in that area.

Although several developers have announced they are building residential projects, the number of apartments finalized last year is 20 times lower than apartments delivered in Warsaw.