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Romanian Residential Prices Might Fall By Another 30% In ’09 – Evaluation Co

Romania’s residential prices might fall by another 20-30% this year, after a drop of up to 20% so far, as the demand lowered in the last period due to the difficult access to bank loans, Adrian Crivii, the general manager of evaluation company Darian, said Wednesday.
Romanian Residential Prices Might Fall By Another 30% In ’09 - Evaluation Co
18 feb. 2009, 14:07, English

"The price of dwellings fell until now by 15-20% and might continue to drop by another 20-30%, due to lower demand and difficult lending conditions," Crivii said in a press conference.

Moreover, land prices that have been speculatively set by property owners might fall by 80-90% in the next period.

"The local real estate market will continue its downward trend this year and will reach balance when people will be able to make transactions, which are not possible now mainly due to the impossibility of taking bank loans," Crivii said.

According to him, the price of dwellings boomed in the past years because the market had lots of money and fewer properties to sell.

According to real estate consultant Cushman&Wakefield, the price of Romanian dwellings will fall by 30% this year.

Between September and December 2008, the price of old and new apartments fell by 15% and 5-10%, respectively, according to C&W.