Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

Land prices tending upwards

The months while the land market stagnated led to a novelty on the Romanian real estate market, namely transactions were concluded at considerably lower prices than last year, reads the Adevarul daily quoting officials of the real estate agencies, outside Bucharest, as saying.

Land transactions went to a deadlock throughout Romania, in July, although local real estate agencies' officials say this is the happiest scenario, because land transactions went considerably low in many areas.

In Arad (western Romania) property overrating makes deals to be closed at prices by 50 percent lower than owners claim. Nevertheless, the general trend is that of expectation, price cuts being used only by those willing to sell urgently. In Iasi (east), land sales stopped. Andrei Pricop official of Casa Activ Real estate Agency believes that fears have been invading the latest real estate market news and the sole area still somehow animated are cropland sales. Farming lands are in high demand, especially the large, amalgamated ones.

In Arad, croplands are in highest demand as well, mainly large ones measuring a couple of hundreds ha., Euromon manager Monica Platon stressed. Real estate agencies think the soaring prices claimed for land is the main reason why the sales lag. Many Bucharest investors buy land outside Bucharest and they do not want to assess the properties for sale depending on their location. Others expect soaring profit margins.

At present, we cannot speak of a drop in the land price, but we can rather say that land sells at its real price, Pricop opines. He says that landowners have been expecting price rises of 20 percent, but the price is growing at a pace of 2-5 percent per year. Many landowners have been fascinated with the price rises during the previous years and they are now ready to wait till they get the money they have dreamed of, Pricop added. But the owners, who need money badly, sell the land for considerably lower prices.

In Iasi, the price cuts reach up to 30 percent, whereas in Bucharest, discounts are ranging between 20-35 percent. This market segment gets mature and speculators are ever fewer, Popa opines.

Certain obsolete price policies still outlive on this market, says Euroest Agency development manager Calin Clinciu, pointing out that the market used to grow at a quick pace, during the years before and the owners used to claim by 30 percent more money than the land paid off. Nevertheless, he believes things are different now and the speculators' age has ended.

Sursa: http://www.rompress.ro

Tags: price percent estate market prices

Articole similare