EXPERTS: "Caution is mandatory to avoid entering a new bubble"

The Romanian real estate market, is showing positive signs, according to most of the market specialists, who emphasize the fact that this year, the sector has seen significant growth, with an even higher transaction than in 2007-2008.

At the conference "Infrastructure and real estate - key areas for the development of the economy", organized by BURSA, the experts mentioned a new boom, but warned that caution is mandatory.

Andreea Comşa, managing director at Premier Estate, stressed the fact that the four factors that underpin the growth of the real estate segment are the First Home Program, the 5% VAT rate, the accessibility of mortgage loans and the cut of the interest rates on deposits. "If these factors change, we could witness a new disappointment", he says.

However, there are also more cautious voices, who claim that the aforementioned statements are far too optimistic.

Along with other analysts, Claudiu Georgescu, the president of the Association of Romanian Makers of Construction Materials (APMCR), considers that the representatives of consulting firms are making bold claims, and he stressed that Europe is getting ready for a new recession.

Şerban Ţigănaş, the president of the Association of Romanian Architects (OAR), considers that we may face a new real estate bubble, and he added that it could be avoided, provided the right tools for that job were found.

Market players have said that most of the transactions (most of them made through the First Home program) are self-financed, and acquisitions of more than 100,000 Euros are backed by bank loans, most often granted by the banks that have financed the projects in question.

On December 16th, over 100 people in the real estate sector and other related sectors have attended the conference organized by the BURSA newspaper, with the help of its partners Genesis Development, Vlad Group, Raiffeisen Banca pentru Locuinţe, Euro Insol, Premier Estate, Sema Parc and Regatta.