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Radu Zilisteanu: Real estate market to switch to other price levels

In the wake of the international crisis and considering the situation of the Romanian real estate market, investors can give up selling the future real estate projects and the market will have other principles and price levels, said Radu Zilisteanu, one of the most renown real estate consultants in Romania in an interview published by the daily Romania Libera.

He pointed out 2008 was the worse year for the Romanian real estate market after 1990, due to the low number of transactions and the significant price decrease. In his opinion, the slump ranged between 20 and 25 percent for the old as well as the new apartments.

Zilisteanu said owners postponed selling as they hoped to get a higher price for their buildings and they chose to rent them in view of reaching profit. He claims 'deferral' is the term describing the current Romanian real estate market. On the other hand, Zilisteanu underscored buyers were also postponing investments until the interest on the credit markets would be lower, with such deferrals made by both parties resulting in this small number of transactions and the price slump on the Romanian real estate market.

The developers of new residential projects are currently facing a special situation, the consultant added. In order to pay their loans to the financing banks, those whose projects were almost completed have agreed to cut prices of such new residential projects. Those who had just started the development of the projects chose to freeze them. They have practically put them off and are waiting for the market to rebound. 'Everything is put on hold these days, including the transactions with old apartments', the consultant said.

Radu Zilisteanu made no prediction on the evolution of the real estate market in the near future, as he thinks he cannot do that as 'there are too many factors that have to be taken into account and it is almost impossible to foresee the market evolution'.

There will be fewer speculations once the crisis is over and the developers can give up selling the future buildings currently in a project phase, he added. The market will practically have other principles and price levels, he said.

 

Sursa: http://www.rompress.ro

Tags: market estate projects levels other zilisteanu price

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