Real estate transactions in Romania go down 20.8% y/y in October, following the financial turmoilPublish date: Astazi, 16-12-2008
The number of real estate transactions in Romania dropped 20.8 percent in October versus the same month in the previous year, following the economic crisis, according to data from the country's statistics body (INS).
As many to 41,672 real estate transactions were completed in October, versus 52,646 in the same month last year.
The number of real estate transactions stood at 33,478 in January, following seasonal variations, INS also showed.
The volume of real estate transactions fell 70 percent from the beginning of the year until November compared to the same period in 2007.
Constructions hiked 31.1 percent in the first nine months over the similar period last year, contributing with 2.4 percentage points at the economic growth registered from January to September.
Starting with 2002 and until now, prices on the Romanian real estate market grew at a spectacular pace and in the last five years, the market value of apartments, villas and land grew more than 500 to 600 percent.
Once the financial crisis knocked on Romania's door, the real estate sector was among the first to feel the effects. The local construction market is expected to decrease next year by as much as 15 percent, subscribing to the domino effect created by the economic crisis.
The local real estate market will escape the crisis at the debut of 2011 when it reaches maturity and investors no longer cash profits following speculations, but from developing lasting projects, the executive manager of real estate developer Futureal Group, Gabor Futo, said at the end of October.
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