Rental demand expected to soar amid drop in interest for expensive apartments

The realty agency Lara forecasts the rent for cheap apartments to rise in 2009 and the interest for expensive rental apartments to drop, with a concurrent decrease in rent, Info-Prim Neo reports. According to the agency, the sliding demand for expensive renal property is linked to the slump in foreign investment, salary cuts for expats and local business sector employees, and consequently to the need for adopting frugal behaviors. Lara said in a report that the decreasing apartment prices may set a certain category of potential buyers on tiptoe. This will lead to a strong demand for cheap apartments, whose rental prices aren’t expected to drop. Apartment prices as well as rental rates were generally flat throughout 2008. The most demanded remain one and two-roomed apartments, the insufficiency of which is felt more and more each year. The average rental prices of the apartments in demand are surprisingly soaring. Towards the end of 2008, the long-term rental rates for one, two, and three-roomed apartments were €150-220/month, €180-250/month, and €250-400/month, respectively. The rental rates for increased comfort apartments remained unchanged at €500-600/month.