27 Octombrie 2009
Economic crisis leaves residential projects on the drawing board
The inventory of new homes increased by 3,300 in Bucharest in the first half this year, which accounts for only 37% of total number of new homes scheduled for delivery, Regatta real estate consultant said in a report.
In 2006 – 2008 interval 168 real estate projects were unveiled, and 8,861 housing units were planned for delivery this year. However, only 3,319 homes were delivered by the end of first half.
“Starting 2006 until 2009, 202 projects were unveiled in Bucharest, namely 121,936 units. So far, only 10,633 were delivered. Around 4,500 -5,000 new homes are currently for sale in Bucharest, half of the total number of new homes rolled out so far,” said Robert Teodorescu (photo), Regatta’s Residence manager.
The study also found that property prices fell mostly in case of old homes, where owners cut down on the asking price by 40-50% compared to 2008. However, in September – October this year, the First Home scheme has lifted old-homes prices by 20-30%.
“The gap between the asking price and selling price of a unit built in 2007-2008 leaves the demand completely unsatisfied until banks move to soften their lending standards. First half can be seen as a deadlock for the housing market”, Teodorescu added.
“Starting 2006 until 2009, 202 projects were unveiled in Bucharest, namely 121,936 units. So far, only 10,633 were delivered. Around 4,500 -5,000 new homes are currently for sale in Bucharest, half of the total number of new homes rolled out so far,” said Robert Teodorescu (photo), Regatta’s Residence manager.
The study also found that property prices fell mostly in case of old homes, where owners cut down on the asking price by 40-50% compared to 2008. However, in September – October this year, the First Home scheme has lifted old-homes prices by 20-30%.
“The gap between the asking price and selling price of a unit built in 2007-2008 leaves the demand completely unsatisfied until banks move to soften their lending standards. First half can be seen as a deadlock for the housing market”, Teodorescu added.