Romanian Dwelling Prices Seen Dn 30% In '09 - Cushman & Wakefield

Romanian dwelling prices are seen down 30% in 2009, according to real estate consultancy firm Cushman & Wakefield, which recommends investments in high-rent generating properties.

The prices of old apartments decreased by 15% in September to December period, while new apartments prices were down 5% or 10% in the same period. Since the beginning of 2009, dwelling prices lost another 10%.
 
"We are talking about a total price decrease by up to 35% from September and until now," the director of the company's evaluation department Dan Ionascu said Monday in a press release.
 
Most of the real estate constructions entered "conservation," and all the projects under design stage or subject to approval proceedings are put up for sale.
 
"The projects under planning and organization stage, which were not subject to constructions works, represent 70% of all new projects started after 2006," the company also said.
 
The small investors that purchased most of the dwellings under construction in Bucharest over the past two years are seen undergoing well the crisis period, as only 15% of those taking banking loans are seen facing problems during this period on being unable to pay back their loans.
 
As regards the residential market, the towns with low unemployment rate will be the most advantaged during the crisis, namely Bucharest, Constanta, Cluj Napoca, and Brasov, according to Cushman & Wakefield.
 
Also, the office areas rentals are the still attractive, and Cushman sees the office yields to increase to 11.5% by the end of 2009, compared with the current 8.5%.
 
As regards the industrial segment, the projects were frozen in Bucharest as well as in other areas of the country, due to cuts in the companies' expansion budgets.
 
Many industrial spaces are seen facing reconversion and getting different uses. Also, these areas could be sold at dumping prices in order to be immediately absorbed on the market.
 
Mediafax