The Romanian real estate market will have moderate rises in 2008, with part of investors preferring to revise projects with a view to maintaining high yields.
As regards the plots of land, a deadlock is taken into account following the high prices requested by owners.
Allowing for the world crisis of mortgages, which renders the access to mortgages heavier, four investors on the Romanian real estate market have recently announced they discard the already started projects or plan to sell assets.
Under these circumstances, Mivan company aims to give up the development of the mall in Tiago in Arad (western Romania).
Owners of City Mall, Australian APN/UKA, announced a 4-percent lower value of the building erected in southern Bucharest (112 million euros).
At the same time, the funds Equest and Fabian, listed with the London Stock Exchange allow for the sale of assets bought a few years ago. Equest takes into account an exit from the domestic market, following the difficulties encountered in the receiving of financing. Fabian mandated the consulting company Jones Lang LaSalle for the sale of office building Baneasa Business Center of northern Bucharest, bought nine months ago for 23.9 million euros and assessed at 29.5 million euros (up 20 percent as against the acquisition price).
From the obtained money, Fabian will finance other projects. Mark Holdsworth, managing director of Fabian investment fund said hard times are predicted on the real estate market as a result of the credit crunch which limited the access to liquidities compared to the rise in the costs of loans and with the excessive rise of construction costs. Under these circumstances, investors are searching for the remaining lowpriced plots of land.