New residential projects may offer discounted prices

As construction costs become lower, newly launched residential units may offer discounted prices, while the lack of sales may force some developers to further decrease their asking prices, the latest Jones Lang LaSalle-Reas report.

On the other hand, while the lack of sales may force some developers to further decrease their asking prices, another price correction may appear when developers will decide to introduce new, less expensive projects to the market.

“As construction costs become lower, newly launched units may offer discounted prices. This may become a necessity as very few buyers may be encouraged to take risks of investing into an early-stage development in the current market situation”, the real estate consultant said in the report.

The last quarter of 2009 noted a low number of dwelling completions at only 895 units. “It is highly probable that 2010 will not bring a significant improvement to the market. Both demand and supply will stabilize at a very low level bringing no reason for developers to start new activities”, Reas said.

Reas is expert adviser in the field of housing projects planning and development in Poland and Romania. Since 1997 Reas has been advising developers, funds, banks, local governments and other institutions in the residential market.

Reas is also a strategic partner of Jones Lang LaSalle in providing advisory services in Poland and Romania.

Last year, 1,300 new apartments were sold in Bucharest, 60% below 2008 level, and 80% below 2007 peak, according to a market research by Colliers International.

Citeste si:

Calculator Salariu: Află câți bani primești în mână în funcție de salariul brut »

Despre autor

Wall-Street.ro este un cotidian de business fondat în 2005, parte a grupului InternetCorp, unul dintre cei mai mari jucători din industria românească de publishing online.Pe parcursul celor peste 15 ani de prezență pe piața media, ne-am propus să fim o sursă de inspirație pentru mediul de business, dar și un canal de educație pentru pentru celelalte categorii de public interesate de zona economico-financiară.În plus, Wall-Street.ro are o experiență de 10 ani în organizarea de evenimente B2B, timp în care a susținut peste 100 de conferințe pe domenii precum Ecommerce, banking, retail, pharma&sănătate sau imobiliare. Astfel, am reușit să avem o acoperire completă - online și offline - pentru tot ce înseamnă business-ul de calitate.

Redactia Wall-Street »

Te-ar putea interesa și: