At present, it is virtually impossible to find offers for such apartments for less than €60,000-62,000 in the western Bucharest Militari or eastern Titan areas, according to the Bucharest Real Estate Index (BREI) calculated for the month of July by the Colliers International real estate consultancy company.
The data confirms estimates by market players, who announced prior to the government program going into effect, that there will be a slight rise in prices, due to an increase in demand on this market.
Prime Minister Emil Boc announced, at the end of last week, that if the “First Home” program is successful, it will be financed in 2010 too, and he believes this will have several positive effects. “Firstly, Romanians now paying €200-300 in rent, will pay the same amount in rent tomorrow, but will have their own home. Secondly, lending will be unblocked, as, with the exception of one bank with a separate program, all 19 lenders are involved in the program, granting loans to Romanians. Thirdly, let us not forget that this is a field of construction with a significant share of GDP [gross domestic product]; through this measure, it will benefit from support, bringing efficiency into the Romanian economy,” Boc said.
“Compared to similar programs developed in other countries, the Romanian program presents itself rather well. With slight weaknesses in terms of eligibility restrictions, the amount offered is good compared to prices on the domestic market,” Colliers consultants said.
People who want to take out loans through the “First Home” program will make a down payment of five percent for a home worth up to €60,000, or of €3,000 plus the difference resulting from the acquisition price, and the interest rate will be EURIBOR (Euro Interbank Offered Rate) on three months plus a maximum four percent per year, on euro loans, and ROBOR (the interest rate on loans on the Romanian interbank market) plus a maximum 2.5 percentage points.
