“Understanding that the only chance to sell a property is to lower prices, homeowners have no other choice. Therefore, the prices per square meter fell to 1,000 euros/sqm for 3/4-room apartments and 1,100-1,200 euros/sqm for two-room apartments and single apartments respectively”, said Calin Serbanescu, managing partner of Coldwell Banker Banu Manta.

In March, a single apartment in a block constructed in 1979 in Moghioros, Drumul Taberei area, covering 34 sqm, was priced at 41,000 euros while the price for a three-room apartment in an old block in Militari area covering 71 sqm stood at 67,000 euros.

In Crangasi, the prices for old apartments seemed to outperform the market, staying 5-10% higher than in the rest of Sector 6. A two-room apartment of 54sqm in a block constructed in 1982 was priced at 62,000 euros at the end of first quarter.

“An important factor in price-setting process seems to be the construction year: before or after 1977. Similarly, lenders grant mortgage loans considering the construction year as well as notaries’ evaluations in calculating fees and in state taxes when selling the property”, Serbanescu added.

In March, the prices of old apartments in Bucharest dropped 15%, the biggest fall ever recorded for housing units in Bucharest, according to a monthly research conducted by Colliers International.

“We are experiencing massive falls compared to last year (…), for instance in Militari and Drumul Taberei - areas with large stocks of housing units compared to the other areas in Bucharest. Understanding that cutting asking prices is the only chance to sell, homeowners have no choice but to market at a price a lot lower”, Serbanescu explained.

Globally, the US-based Coldwell Banker is currently held by Realogy Corporation, one of the world’s biggest real estate franchiser, operating in 47 countries and 3,600 branches worldwide.