Since 2009, every year we play the same “game”. Once or twice per year, some “market players” explain why the prices are expected to rise this year. As people are always ready to believe whatever flatters their ear, for a few weeks the asked prices rise. Then reality comes crashing in and destroys all these theories. Prices drop lower than they were before and in a few months’ time the same people appear in the media and retell the same story.
The situation remains the same:
· Everyone is waiting for what will happen in the European and global economy
· Every serious market player thinks of the first half of 2012 as “lost”.
· Banks are still blocked, waiting for news.
· They don’t lend, but even when they do, their interest rate is not yet “attractive”.
· Greek banks with presence on the Romanian market will, probably, be the first to be recapitalized (they are expected to receive some 30 – 50 billion Euro).
· As I told you since autumn, in Romania the demand offers a considerably lower price than the supply wants to get.
· Retail is rising, but without tremendous steps.
· Residential continues to be blocked.
· Office is between the market reality and the “experts” announcements.
· Industrial – logistics grows at a moderate pace.
· Plus there are many different challenges and question marks in every sector.
This is the situation I experience through my activity in Romania since the beginning of the year. I will be really happy to receive some SERIOUS arguments as to why the prices may rise in the following months.
What is your opinion?
About Ilias Papageorgiadis
Q: How did 2012 start for the residential market in Iasi?
Dan Mihoci: The real estate market is headed towards normalcy, without “sentimental” pretentions of the seller or unfounded requests from buyers with an evident need for consultancy, for both buyers and sellers. Despite the bad weather and the economic and political instability, the real estate market is an interesting chapter for everyone.
Q: In 2011, the year started with a high level of interest but few transactions. How did the market evolve ... 
