23 Decembrie 2008

Cushman: All real estate segments will take heavy losses next year

Industrial market had a flat evolution in 2008, the residential market dropped, while the office market increased, whereas the narrow growth did not meet the expectations. In 2009, all real estate segments will undergo a downtrend, Cushman & Wakefield says.

“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.

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