The price of a 500 square-metre plot of land in a commune near Bucharest stands at at least 10,000 euros, while builders can deliver a three-bedroom home for 60,000 euros.
The costs of buying a 300-500 square metre plot of land in a commune in Ilfov County such as Dascalu or Clinceni and the building of a three-bedroom brick house on this plot amount to about 70,000 euros, reveals a ZF analysis based on the information on the market.
The prices of land in Bucharest and around it have gone down by 40 to 50% since mid last year, and a 20-30% cut from the new prices can be negotiated with the owners who really want to sell at this time.
The websites of the agencies that broker deals with land show offers at 30-40 euros/square metre. If applying a 30% discount resulted from negotiations, one can get a 300-500 square metre plot, which is enough for a home with a medium-sized garden, at a price of 10,000 euros.
As for the construction works, the specialised companies have adjusted their offers accordingly. A 60,000-euro budget, the maximum loan that can be granted via the "First Home" programme, will be enough for a three-bedroom house.
"At the current prices, we can build a 120 square metre house, installations included, but no permits and utilities, with a 60,000-euro budget. If one has the plot of land, we can build a living room with an open-space kitchen and a bathroom on the ground floor and two bedrooms and another bathroom on the first floor. If we build a one-floor home, we could make it a three-bedroom one for this money," said Nicu T., manager of a construction company with a 2 million RON turnover in 2007, according to the Finance Ministry's website.
Quality of finishings would be "medium to mediocre" the builder says, while walls would be made of brick and 25 centimetre-thick.
An amount of 70,000 euros is enough to buy an old two or three-room apartment in a district such as Colentina or Drumul Taberei in Bucharest, and a two-room apartment in the new buildings in the same districts.
The "First Home" programme whereby the Government guarantees the banking loans is not intended for those who want to build a house on their own, but only to those who want to buy services from specialised companies, which "will be able to pay to the state contributions, salaries and valued added tax," the Government officials specified.
In other words, the owner of a plot of land who wants to build a house on that plot could get a loan guaranteed by the state only if a specialised construction company guarantees that the money will be used to build that house in a specific period of time.
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