Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

Crisis cuts one third of real estate property value

The value of real estate properties - malls, office buildings, houses and land - has declined by an average 30-35 percent since January, due to a 15 percent annual increase since 2004, Managing Partner with Colliers International consulting company Bogdan Georgescu told Business Standard daily on Thursday.

The depreciation was caused by the international financial crisis, which had sharply affected the local eeal estate sector, making investors think twice before acquiring a property.

In this context, the value of buildings and plots of land plunged back to the 2005 level. The sharpest decline was registered on the retail segment, especially in cities outside Bucharest, where numerous malls were announced. However, developers realized that so many malls cannot be supported by the purchasing power.

However, specialists are expecting the drop in prices to end in 2009. 'The value of real estate properties will not decline significantly next year. It will drop a further 10 percent, and then begin appreciating,' Georgescu said.

 

Sursa: http://www.rompress.ro

Tags: value estate

Articole similare