Romania Realty Mkt Prices Scary If Real – Ctrl Bker

"There is a whole illusion about the real estate market. Notaries can provide real data on realty deals and we need to have an analysis that is based on reality,” Isarescu said during a financial seminar.

He commented on analyses that see the real estate market crashing, saying that if fictitious sale prices are at EUR2,000 and deals are made at EUR1,000 in the future, that wouldn’t necessarily count as a "crack".

"There are plenty of comments that the market will crack, but it depends whether it falls from the real price or the fictitious one," the central bank official said.

Asked what he would have to say if it turns out current prices are real, Isarescu said: "then we should be scared ".

The central bank met Monday with officials of the Union of Notaries Public to discuss a framework for the exchange of statistical data on real estate deals.

The central bank has previously shown concern over soaring real estate prices and nearly two years ago, Isarescu spoke of a bubble in the case of some areas.

Several central banks have shown concern as to the evolution of realty prices and its effect on inflation, particularly after the start of the U.S. subprime lending crisis.