“The scenario will be as follows: less credits, therefore less housing units, less furniture, less home appliances, companies will stop developing, and there will be fewer rentals. As a result, we will witness a “waterfall effect”, a chain of shortfalls triggered by a flat economy. The absence of credit will lead to declines and restrictions in economy and the adjacent sectors will be severely affected”, said Razvan Gheorghe, partner managing director of Cushman & Wakefield, NewsIn informs.

He added that in the midst of financial crisis, job losses are inevitable. “I expect the layoff percentage to reach 10% of the active population”.

Razvan Gheorghe thinks the absence of loans and the increase of the investments’ risk grade will have a negative impact on developers.

“The economy is decreasing and we will probably see failures in the real estate sector. I believe the most affected sector will be the residential industry”, said the real estate analyst.