Daily Picture 18-Mar-10: Art Nouveau and Property Bubble Hangover

A Bucharest variety of 1900s Art Nouveau style house that also displays rococo and early Neo-Romanian elements, in a very bad state of repair, next to a flashy stretch limo that gathers dust, among empty plastic bottles scattered on on a dirty unmaintained pavement. Maria Rosetti area. (©Valentin Mandache)

The photograph, which I took in late autumn last year, of a luxury limousine next to a deteriorated period house, inhabited by poor state tenants, is a telling metaphor of the hangover feeling that engulfed Bucharest after the bursting in 2009 of the Romanian property and financial bubble, which saw New York type prices for property and credit fuelled ‘new Russian’ style consumption excesses. The sky-high property prices are still lingering aroung, making the purchase of a period property in Bucharest one of the most expensive, riskiest and unprofitable investments anywhere in the European Union. My estimate is that although the prices are about 20% less than the exuberant levels of late 2008, they are still having a very long way to go (another 60% down from today prices) and reach a level that would reflect the undeveloped infrastructure and economic reality of Romania.

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I endeavor through this daily image series to inspire appreciation of the historic houses of Romania, a virtually undiscovered, but fascinating chapter of European architectural heritage.

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If you plan acquiring a historic property in Romania or start a renovation project, I would be delighted to advice you in locating the property, specialist research, planning permissions, restoration project management, etc. To discuss your particular plan please see my contact details in the Contact page of this weblog.

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