Colliers: "First Home" Program Had No Significant Influence On Residential Prices

The Romanian Government's intention to launch the “First Home” program led to a slight increase in residential prices, especially for two-room apartments, but this trend was not registered by the entire real estate market, according to real estate consultancy company Colliers International.

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"The intention to launch the "First Home" program did not cause a significant impact upon the real estate market. Despite rumors on the price increases over the last period, BREI data indicate the market is unchanged," Colliers said.

The 2nd, 5th and 6th districts of Bucharest registered slight increases of BREI-Old (e.n. monthly index valuating the prices of old apartments), while districts 1 and 4 accounted for a very small decrease. Prices in the 3rd district remained unchanged.

In 2008, Colliers International launched BREI (e.n. Bucharest Real Estate Index) monthly index that monitors the prices of apartments in Bucharest. The index is split up into BREI Old and BREI New, monitoring old and new apartments, respectively.

The Romanian Government announced several weeks ago a program to guarantee the loans contracted for the purchase of the first home, within the maximum limit of EUR60,000, with the entire financing granted to this program reaching EUR1 billion.

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