The average price of a foreclosed one-bedroom apartment in Bucharest is EUR 20,000 while for a foreclosed studio apartment buyers pay on average EUR 7,000, according to Executari.com, a Romanian foreclosure website. In the case of studios, prices can go as low as EUR 2,350.
Most local banks are cutting the price of foreclosed properties by 25 percent, according to the same source.
“Those who are interested in foreclosures already know that if the property is not sold during the first bid round, than it is mandatory for the price to drop by 25 percent. Lately, in 90 percent of cases, no one shows up for the first bid which forces banks to organize a second bid where prices start at 75 percent of the initial value,” said Elena Puica, sales manager at Executari.com.
Some of the Bucharest properties presently available on Executari.com include a 16.77 sqm studio apartment at 5, Corneliu Coposu Blvd which following the 25 percent cut costs EUR 8,460. Outside Bucharest, the price of a foreclosed studio varies between EUR 4,250 for a 26sqm property in Vaslui to EUR 8,500 for a 33sqm studio in Arad and EUR 8,850 for a 45.35 sqm sudio in Bacau.
In the one-bedroom apartment category, there are tens such properties on sale in capital Bucharest. For example, the asking price for a 35sqm one bedroom apartment at 5, Salaj Road (District 5) is EUR 21,570 while another 38sqm property located at 3, Aleea Dolina (District 4) costs EUR 25,000.
All of the above mentioned properties do not include VAT.
The number of foreclosed homes has been going up in recent months in Romania and the trend will be maintained in 2013 in direct relation with the number of nonperforming loans reported by banks, Adrian Erimescu, CEO of Imobiliare.ro previously told BR.