A side note that is paramount in some real estate values; the PRE elections are playing a role here… especially in sector 2 near Decebel, Stefan, and Mihai Bravu. If you’ve driven around a bit you have to try really hard to miss the commie buildings draped in tarp and flush with scaffolding. You’ll see a total of 8 color schemes being used on these buildings, with some sealant foam, some pressure washing, and some slight rehabilitation, these buildings are getting a new lease on life. Could this possibly be politically motivated in some way?? Nooo of course not…. But none the less, curb appeal plays a very important role in the values of the units in that particular building as well as surrounding buildings.

Communist Style Building "Before" painting

When I was here a few years back, I feared I may have missed getting in at the beginning (or relatively close to the beginning) of the big wave of appreciation that came with the formal announcement of EU “acceptance”. I actually began looking in Cluj and elsewhere for different property opportunities (the Nokia establishment was a big draw, as was the “college town aspect”) because I suspected that the smaller cities in Romania would follow suit. It was then that a 1 or 2 bedroom flat in the best areas of Bucharest could be had for around 130,000 Euros. Tipping the scales were some ultra-luxurious smaller units in Dorobanti for 250,000, but for the big picture, I tossed out the ultra-highs, as well as the scummier areas of town. I basically stayed within sectors 1 & 2, with a small piece of sector 5 that was interesting to me value wise.

Communist Style Building "After" painting

Fast forward to today… do we see prices hovering around where they were prior to the “boom”? New construction has picked up again, prices have fallen in some sectors, however seem to follow no distinct “pattern”.

Do we have another great wave to ride?

I hear so many people telling me I am crazy for wanting to buy as much well placed, potential- laden property that I can (including suburb land) but I really believe we are heading for a big upswing pretty soon… within the next 2 years. There is indeed a lot of money coming into Bucharest (from Romanians that have left and come back, to Arab influx, as well as many American and English expats). Is it what Bucharest was expecting as far as foreign investment? Doesn’t matter.

Remember…. 80% of the crisis is in peoples minds… but it is these people that influence the purchasing habits of the whole.

Buy low, sell high. Yes we may have a bit more to fall, but the sure thing is we ARE lower now than we will be in the future. Get in now, continue to get in, until you start to reap the rewards of the climb. Then stop “getting in” and begin the transition back out. This is so simple people. Forget all the other “strange elements” and make the decision to at least move forward.

An interesting point however: the suburbs are growing. Becoming more westernized? There WILL be urban sprawl, which will leave the less desirably properties in the city in a bit of a pinch, but as always it will swing back and forth. Just position yourself properly and you’ll benefit from both Urban and Suburban property. I originally thought the high end market was toast, and would continue to feel the hit from both the crisis and the sprawl, but I have since revised my way of thinking. The wealthy is a growing class. Keep this in mind when purchasing. You may not believe it now, as we are surrounded by, and bombarded with the scarcity mindset of cashflow, but again, 80% mental.

Incoming search terms:

• real estate at bucharest
• 2011 housing prices bucharest
• real estat pour expats bucarest
• sale property in bucharest december 2011
• real state bucaresti
• real estate price bucharesht
• real estate in bucharest;s suburbs
• real estate in bucharest
• real estate bucarest 2011 crisis
• property for sale in Bucharest 2012

Related posts:

1. Real World Crisis? Funny…
2. Earning Income In Bucharest
3. Interesting Experience With TVA

Let me start off by saying that I have lived quite a few places around the World, and Bucharest, although perceived at first as one of the more expensive cities, actually is not. Now a few things have changed since the US screwed the planet and the “crisis” hit, but this is going to be a “snapshot” of how Bucharest is (in my opinion) at exactly this moment in time.

First off is the apartment/lodging/hospitality category of expenses. Bucharest has it’s share of pricey hotels, no doubt. I would say that one would expect a “good deal” or reasonable price on a room for a night would be sub-100 euros with taxes included. Well, if you kick out the Radisson, Marriot, Howard Johnson, Intercontinental, and some other uber-nice hotels here, you can actually find many “boutique” hotels that offer excellent amenities around the 70-90 euro a night rate. They will probably have wi fi in the lobby only, furnishings won’t be to die for, but you should get a decent nights sleep in a quiet clean environment. I will look around for my recommendations on “budget” lodging shortly. Hotels are an inherently expensive way to travel anyway, so with that being said, even the more expensive hotels are still on par with the international average.

Apartments (both long term and short term rentals) actual rival what I’ve found in some of the “cheapest” places around. An example is Buenos Aires, Argentina. BA, notable for its low cost of living, is actually quite high compared to Bucharest, like other cities, because of what I’ll call the “hidden costs”. Buenos Aires typically requires upfront payment of all your rent for the term, 2 months commission and 3 months deposit (anyone who argues this about BA, you have yet to learn). In Bucharest, if done properly, is not this way. Expect a long term rental in a decent area to average 450-500 euros per month for a one bedroom, 650-800 per month for a two bedroom, and so on. The absolute nicest areas in Sect 1 and city center should be more. With the short term “turn key” rentals you’ll be on par with the rest of the large European cities at weekly prices starting at that. An interesting point to follow is the point of diminishing returns for investors on larger units. When I first moved here I was in a rooftop penthouse that was extremely large with a huge terrace. It was located in the center in Unirii. I was paying 1,200 euros per month. As an investor, you’ll reach a ceiling on the rental amount you can receive on your unit, so your buying solely for appreciation as opposed to ROI at that point. This works out great for us renters if we need a lot of space or are okay with roommates! Something to keep in the back of your mind. Apartment purchases should be around the 80,000.00 Euro price starting out. This is decent areas, but small size. I will create a separate post on purchasing. Let’s move on, I would love comments and discussion and opinions on all of this so far…

Food here can be had very inexpensively if you know where to go. The highly trafficed tourist areas will jack the prices up a bit, but here’s the average:

A large pizza – 8 Euros (35 Ron)

Coca Cola – 1-2 Euros (5-8 Ron)

Great Sandwich for Lunch with Chips – 5 Euros (22 Ron)

Nice Dinner at decent restaurant (per plate) – 8 Euros (34 Ron)

Cappuccino or Double Espresso – 1.5 Euros (8 Ron)

Tipping here is typically ten percent, and is dependent on quality of service. I found the most expensive place I’ve been to eat was Madrid or Paris, with prices easily 50 % higher than this, during the crisis. Buenos Aires still wins on the food prices, but all in all, for both lodging and dining, I would compare Bucharest to cities such as Atlanta, Seattle, Barcelona, basically the “almost biggest” cities in any given region. The New Yorks, Madrids, Londons, Tokyos, Paris’ and Moscows, still stand in a league of their own as “really expensive”.

Keep an eye out for my “off the beaten path” sections that will be coming up on here next week… you’ll get a kick out of the cheaper trendy places around here as well.

Incoming search terms:

• living in bucharest
• cost of food in bucharest
• cost of living in bucharest 2010
• bucharest cost of living for expats
• cost of living in euros buchurest
• food prices in bucharest
• food price in bucharest
• bucharest expat cost of living
• how much costs food Bucharest
• how much a month in bucharest

Related posts:

1. Where to Stay; The Basics…
2. Prices Fall During Crisis?
3. Is There Variety In Food?