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Higher Supply of Apartments for Rent Brings Down Rates

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Autor: Daniela Ivan 07 Mar 2009 - 00:00

Rent rates went down this year, after the number of available dwellings went up 70% from last year.



According to representatives of AnunturiParticulari.ro web-site, which monitors all online offers placed by individual owners, there were some 1,500 units available for rent on the market in January 2008, while in January 2009 there were 2,500.

The prices for renting a studio went down some 20 Euro from a year before, averaging 342 Euro in January 2009. While the rent for a one-bedroom apartment is down some 10 Euro, to 505 Euro.
The drop in rent rates was even more obvious in the case of two-bedroom or three-bedroom apartments, which are less sought for, as the maintenance and utilities costs are obviously higher.
The asking prices for this type of units went down some 100 Euro, to reach in January 741 Euro and 1,069 Euro, respectively.
The market turned into one favoring the tenants, from one favoring the owners, real-estate agents say.
They recall how last year prospective tenants engaged in impromptu bidding, right at the apartments' door, racing to outbid one another. This year the tables had turned, with apartment owners racing to provide as many extra-options as possible to win over a renting contract.
Prospective tenants can afford now to be choosy, and ask for better location, proximity to metro stops or other transportation grids, an overall clean neighborhood, plus appliances like cooking and washing machine, TV set, fridge and Internet connection already installed.

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