Only seven out of twelve residential projects in Brasov still happening

This stock is below the level registered mid-2008. The canceled projects would have brought another 1,400 units onto the market in their first development phases.

Sales of new apartments in the city have been decreasing, from an average of six apartments in each project per month last year to one or two now.

“The main reasons for this are job uncertainty, the unaffordable prices, the fear brought about by the financial crisis and the worsening of lending conditions imposed by the banks,” said Stefania Baldovinescu, manager of the consulting division at Colliers International.

Prices have also fallen accordingly. So far, the market has seen a 30 percent slump in the sale prices of old apartments since the end of 2008.

Prices of new apartments have fallen half as much, sinking 14.4 percent in the first quarter of the year compared to the average price at the end of 2008.

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Colliers expects end-users to make up the bulk of the demand for Brasov apartments in the coming period, with investors showing little interest in apartments in the city.

Corina Saceanu