“The fact that certain developers may block construction sites is likely to lead to narrowed residential offer and price growth. An important fact on the residential market is that there are no more investors who used to buy several apartments in purpose of speculation, the focus being now on end-clients, which is a normal course in the evolution of this market segment,” Eduard Uzunov explained.
According to him, there are many issues that dent the market and stir up the crisis status, such as application for authorizations and required documentation from City Hall, lack of infrastructure in terms with high market demand.
“When foreign investments must be emboldened, and shored up, regulators fail in granting authorizations, or the process is burdened by bureaucracy. The crisis is temporary and the decision to invest should be based on accurate economic analysis applicable for long-term. This calculation applies for buyers, developers and investors at the same extent,” Regatta chairman added.
Uzunov said banking institutions must reset services to what is actually on the market, so that all individuals who apply for a house loan to be approved. He added that wages were raising, and this was influencing the demand for real estate products.
Romania is a specific country, and cannot be compared with United States, Canada, Germany or France. This is why the crisis moment can become an advantage in global economic landscape, considering that Romania was not directly affected, head of Regatta added.
“Even if certain individuals may see trading session halt at Bucharest and Sibiu as shocking event, we must acknowledge that Romanian market is much lower than giants in New York or Tokyo, and this means it can be easily shook up,” Uzunov stressed.
He explained that Romania is a market with many opportunities as all fields need to be upgraded, whereas in real estate businesses the location value is the core factor.
Translated and adapted by Camelia Oancea.
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