The cost of renting an apartment is continuing to grow. The latest INSTAT data shows that, compared to January 2017, the biggest increase in costs of living are observed in the group "rent, water, fuel and energy", with a rise of 3.3%.
But why is this happening? Experts explain that economic instability has made families, young people and students increase the demand for rented apartments.
It has also recently been determined that those most in demand are the smallest apartments at the lowest end of the pricing scale.
"Economic instability has led to increased demand for small apartments," said Lefter Sila, a real estate market expert. Sila went on to explain that the suburbs remained the areas most in demand, due to the more affordable prices offered to citizens. "The apartments in the suburbs are the most sought after because they are cheaper," clarified Sila.
Meanwhile, the sale price of apartments remains stalled, with estimates predicting little to no future movement, either. Recent trends also show house purchases are made mainly through the viability of bank loans, with little to no cash deposits applied.
There has also been a significant increase in construction permits. INSTAT data shows that for a 9-month period in 2017, a total of 167 construction permits were issued, compared to 65 for the same period of the previous year.