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Real estate companies postpone building of three-thousand apartments

At least five real estate companies on the domestic market have announced their intention to postpone building of three thousands apartments, both in Bucharest and in other cities in the country, with this to represent, according to the specialists, only the beginning of a real crisis on the domestic real estate market, so far considered as a true El Dorado, Ziarul financiar daily reads on Wednesday.

The player having most recently announced blocking of some of its new real estate projects was the Greek company QLD, the developer of the Green Lake project, with the company suspending constructions works at the residential complex Waterfront in the Lacul Tei area in Bucharest, which was to has 208 apartments and 16 villas.

'We continue with our already under development projects, Green Lake Residences and Blooming House, according to the initial plan, but we decided to postpone launching of our new projects on the local market till next year's spring, when we expect to have a more clear perspective on the real estate environment,' Nick Stathakis, QLD CEO told the abovementioned source.

Real estate developer Copper Beech has also announced recently its intention to frozen its projects on the local market, except for the Blue Tower complex in Bucharest, where the constructions works had already begun; Copper Beech was to launch three new projects in the Pipera area in the Capital, with some 1,000 dwellings.

'The market is very slow now and that's why we have decided to postpone most of our projects we were to develop in Bucharest,' Chairman with Cooper Beech Diwaker Singh told Financiarul paper.

Copper Beech is currently building a 16-store block with 156 apartments in the Colentina area in Bucharest, with investments worth 30 million euros having been ensured from own sources and also via a loan worth 14 million euros contracted with Alpha Bank.

In its turn, Gigant Construct Company, controlled by business people from Island aimed at erecting its 4th project in the Titan neighbourhood in the Romanian capital, with 400 apartments. As following the drop in the sales, which resulted also in the cheapening of some dwellings in projects which were already under development, the company postponed for next year's spring making a decision related to this project.

The real estate crisis is not affecting only Bucharest or projects, which are only in their first development stage. Thus, the British investment fund Fabian, together with its partners, postponed launching of such projects in Timisoara (western), Oradea (north-west) and Satu Mare (north), with 750 dwellings in total, although it has got the building authorization for the complex with 429 apartments in Timisoara.

Moreover, RomReal, running on Norwegian and British capital, announced it would stop construction works at the two projects in Constanta (southeastern Romania) with almost 500 dwellings.

According to Financiarul daily, RomReal will return the money paid in advance by those people who made contracts to buy a house in one of the two complexes the company was to erect in Constanta, due to the fact the company didn't manage to contract loans neither for Central Apartments nor for the Corallia Holiday Apartments, although it appears that the sales for the Corallia complex looked quite good, with the constructor, the Baumeister company, having already begun construction works.

'Baumeister is in delay with the construction works, but with the project to be still completed in due time, that is in the summer of 2009. Due to the fact that we were not able to get financing from the bank, we are considering now other possibilities to find these money we need,' ti was said in the report of the real estate developer.

RomReal has suspended construction works at a projects in northern Constanta, 'Oasis Residence,' which was to come with 383 dwellings. 'The works will be stopped until the conditions on the market will be significantly improved, with the sales to see an upward trend again,' the company announced.

RomReal operated in Romania via its Westhouse branch, which had announced late in 2007 investments worth 1.5 billion euros in the next seven years in the development of several projects in Bucharest, Constanta and Brasov. The company registered losses before taxes standing at 39.2 percent in the third quarter of the year.

 

Sursa: http://www.rompress.ro

Tags: company projects works which dwellings bucharest announced building postpone estate three apartments market blue

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