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Romania will be a country of malls, according to Euroest

Romania is behind Spain with 20 years in the real estate sector, but hundreds of malls are expected to be constructed, while the price of new houses will not go down in the next period, Adrian Niculescu, business development manager at Euroest Group told Rompres in an interview.

This is a period of calm between a boom and another. The first boom included many speculative operations, sudden increases in price, mostly without logic. The new boom, to start now, will belong to the professionals, developers, investors and agents, said Niculescu. Over 100 projects of malls in Romania were announced. In the beginning, he said, things were simple, you bought a terrain, hire an agency and build a mall. The developers currently operating on the market have a 10-20 year experience and the future belongs to the network of malls. At the end of the day, only the big players matter, anyway. The small developers are forced to sell, sooner of later, as they cannot compete with the strong developers or conclude long term contracts with the kind of tenants they have. This is the market of owners, as the demand is larger than the offer. The balance will change at the end of 2009 due to the projects to be finalized. Last year, to finance a project, the bank asked you to invest 20 percent and gave the rest of 80 percent. In 2008, the banks ask a 40 percent contribution and offer the rest of 60 percent. Some investors with good reputations can still obtain 80 percent financing from banks, but this is not the market trend. There aren't signs of crisis in Romania. The market will soon become more competitive. This is a good moment for acquisitions, he said. Sursa: http://www.rompress.ro

Tags: percent malls romania