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Recent developments in Romania's real estate market

Romania's real estate market has not declined as a result of the US mortgage crisis.

According to Country Manager Reuven Havar of Africa Israel real estate developer, the current situation on the stock exchanges does not modify anything in the development of the real estate projects already started in Romania, and the company has acquired land and built well-targeted budgets. Havar mentions that his company continued to buy land in the capital city of Romania even this February. Jones Lang La Salle Capital Markets Business Development Director Troy Javaher says it is difficult to gauge how badly local markets are affected by the US crisis. He adds that the companies having entered Romania of late acquired land for much smaller then the going trade prices and will be spared the effects of the price rise on the real estate market. Austrian Immoeast investment fund issued in May 2007 279 million new shares for 10.2 euros per share, raising 2.8 billion euros to fuel its investment in Romania, which is the most important market to the fund. Immoeast has acquired over 100 properties in Romania and took over 25 percent in the shares issued by developer Adama. Investors have detected a more careful selection on the part of the banks providing funding for real estate projects, after record mortgage loan figures in 2007. Thus, Africa Israel was extended funds of 234 million euros by the London branch of Germany's Hypo Real Estate bank to develop AFI Cotroceni Park, a shopping mall in Bucharest City and administrate it for five years. In November 2007, Copper Beech took out a 575-million-euro loan from Banca Comerciala Romana for several residential developments, and Iulius Group got a 175-million-euro laon from German Eurohypo bank for refunding its ongoing projects and continue business expansion. The number of real estate companies operating in Romania that are floated on international stock exchanges is said to have increased over the past years, and such companies operating in Bucharest City are listed with the bourses of Sydney, London, New York, Vienna and Tel Aviv. Most of the unit trusts having invested in Romania's real estate are floated on the AIM bourse of London and their losses have not been considerable. Dawnay Day lost 19 percent of its value; Lewis Charles 18 percent; Equest 15 percent and Fabian 5 percent, while British real estate unit trust ECDC advanced 3 percent in value. Sursa: http://www.rompress.ro

Tags: estate percent romania market romanias euro

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