Romanian Developers Sell Unfinished Apartments To Lift Sales

Real estate developers began to sell new apartments without finishings in order to cut prices, and also offer free kitchen equipment and other discounts to boost the sales, according to real estate consulting agency EuroMetropola.

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“Developers which have the necessary financing to complete the started projects revised their plans and now offer the apartments without finishings, “in grey”, to clients in order to reduce the sale price as much as possible. Such an apartment can be 10%-20% cheaper than a finished one,” an EuroMetropola press release said.

According to the company representatives, the market is filled with this kind of offers in residential compounds all over Bucharest.

Moreover, the number of developers who choose to sell “in grey” apartments could increase in the future as the government approved for them a value added tax, or VAT, reduction that will be applied as of 2009.

“After the VAT will be reduced to 5% for dwellings cheaper than EUR100,000, developers will be more interested to sell apartments without finishing at a lower price, as the future buyers will be attracted by it,” the statement said.

Romania's Government recently adopted an economic support plan which, among others, diminishes the VAT for building dwellings with a value lower than 100,000 euros.

This new measure is the most recent one introduced in order to increase sales of this kind, after offering kitchen equipment, parking and free deposit spaces and offering 15%-25% discounts.

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