Determinants of the house prices in Romania: How to measure house prices in a new EU state

This paper examines the construction of real estate databases and the valuation of properties in Buz?u, Romania. One of the criteria for candidate states for EU membership is an effective monitoring system for the land and real estate markets. The objective of this paper is twofold. First, the development of a set of databases, procedures and guidelines that enables a valuation process on the Romanian real estate market and secondly, using those databases, to gain insight into the real market value of recently sold properties. We use the observations of estate agents and banks starting in May 2007. Using hedonic regression, with house and neighbourhood characteristics, we estimate the house prices.Sectie VWMOTB Research Institut