“What we see now on the real estate market is less the effect of the global crisis and more about rumors in it. However, Romania is one of the last countries in Europe in terms of salary/sqm index. In order to buy a two-room apartment it takes 50-60 years compared to 20 years in other countries in the region,” PWC Romania representative stated.

He added within the seminar that real estate developers will tend to reset construction costs in the final price that until now, it was merely 7-8% of it, and this will lead to a growth of sale price of new units.

Simon Galon, Chief Executive Officer of Globe Trade Center Romania says the calculation on the number of salaries needed to buy an apartment is difficult to define, in Romania as well as in Ukraine and Bulgaria, as most of the people don’t register all their incomes.

“The problem with salaries is well-known in Romania, Bulgaria and Ukraine. However, the demand for dwellings is high, many people do have the financial sources, and we focus on them. We build for middle-class segment,” said Gallon, adding that price of apartments would not decrease because the banks will markup loans’ prices and construction costs will hike.

Translated and adapted by Camelia Oancea.