7 + 1 reasons why February is one of the most important months this year

This "white" period of Romania starts to be annoying. The country is buried under the snow since December and the majority of business activities have been frozen as well. We all hope that this period will end soon, as this year is a really critical one for the country's progress. But after what happened during the end of last year and in January, February has become the month which will indicate the market's direction throughout the year. Why? I give you today 7+1 reasons to think about it…

1. The residential market awaits the announcements for "Prima Casa" programme. We expect them during this week or the next one. If yesterday's rumors become reality, some people will try to create a new bubble like in the past. But I don't think that the market will really follow them.

2. If "Prima Casa" pushes the prices up, the market will freeze. Owners will automatically raise their expectations, while the Romanian buyers will not easily pay 20 – 50% more for the same property. Foreigners will stay away from "exaggerated prices", the pressure on unsold properties will be higher

etc.

3. We started to notice a slight change in banks' behavior. As I will explain to you soon, many banks need to lend  money again, so as to fix their ratios. If this new strategy begins, it will be implemented from March, thus now we are at the critical period of deciding upon each bank's policy.

4. Many Real Estate Funds appear to be ready to enter in the market, provided that they will find the opportunities they were searching for. During this month they are expected to become either more "aggressive" and go out in the market searching for deals to conclude (as many people wish) or more skeptical and continue their slow activity.

5. I really doubt if the Romanian economy succeeded to reach its economical targets during January through the snow, the closed streets and all the obstacles that we faced during our daily business activity. If the same trend will continue in February, the bet for the country to recover in 10 months will be quite challenging.

6. We expect news regarding the easier absorption of European Funds. The only sector which looks to be ready for this is the energy one, with the announced projects exceeding by far the funds the country has allocated. February must bring us more news in various segments, in order to send the signal that these billions will finally be injected to Romanian economy, as of this year.

7. The sales period enters in its last phase. If retailers see their figures down again, they will definitely become even more defensive and careful throughout this year too.

7 + 1. The problem with the Trade Registry has to end. The more it exists, the worse it turns the whole economic environment. If the uncomfortable situation of today continues also until the end of the month, it will start "characterizing" this year's business potential as well. And we do not want that…