160 euro / month for a renovated studio at Piata Victoriei: Is it the beginning of the end? Or the end of the beginning?

This article was published on 13.01.2010

I think I have already told you that I have a friend who is a real “scanner”, crosschecking the market in daily basis, finding opportunities, comparing prices throughout the months etc. So, searching for another friend of mine, she sent to me several super offers for apartments to rent in ultracentral areas, at Piata Victoriei, Dorobanti etc. All the offers were very attractive, about 250 – 350 euro / month for a renovated furnished studio in these areas. (I had informed you since last year that, due to “Prima Casa”, the prices in top areas have almost become the same with the ones in Titan, Drumul Taberei etc). But there was one offer which made me blink:

The Add
“VICTORIEI, Piata, garsoniera renovata, utilata, mobilata,internet, metrou, 30 metri patrati cupluri, salariate, civilizate, proprietar, negociabil,  Pret:160Eur. Tel. 0732… / 0746…

The translation
On Piata Victoriei, garsoniera (studio) renovated, with all utilities and furnished, internet, metro, 30 sq.m., (preferred) couples with salary, owner, negotiable. Price: 160 Eur (/ month)

The bottom?
Well, guys, if this add is not fake, but real… this is it. This is the end of the road. When a renovated studio downtown costs 160 euro / month (negotiable), then how much should it cost so as to be in “distress” price? And if this is the price downtown, how much to be in other areas?
This price is definitely very low and someone might say that it is an exception. But a colleague of mine rented a studio (of 48 sq.m.) at Dorobanti, with 250 Euro / month and there are plenty of offers with similar prices. So this is the real market today, in terms of rentals of small apartments in downtown areas. Yes, this add represents the bottom of the market, in this category of properties.

The beginning of the end?
So, if we reached bottom in residential rentals of small downtown units, does this mean that this is the beginning of the end? Are we close to the moment that the market will stabilize and then it will go up again?

or the end of the beginning?
Or did we finish with the first phase of crisis and now we enter to the core of it, which will lead to the stabilization of prices at these levels on the long run? Is this price range going to be the reference for this category of the market during 2010?

We reached bottom, so as to stay, or to return soon? We will be here to watch the evolution…