Last but not least: Since last year we live in political instability<\/strong>. Either we don't have a government (like during 3 months of 2009) or we have one which keeps on receiving "grace periods" (as we all read in the media). This does not help…\n\t<\/li>\n<\/ul>\n\n\tSo, let us sum up the facts:<\/strong>\n<\/p>\n\n- \n\t\tEconomy doesn't have good potential over the following months.<\/strong>\n\t<\/li>\n
- \n\t\tUnemployment will remain high.<\/strong>\n\t<\/li>\n
- \n\t\tAusterity measures were implemented and more ones are expected to follow.<\/strong>\n\t<\/li>\n
- \n\t\tIncomes will be reduced furthermore.<\/strong>\n\t<\/li>\n
- \n\t\tInvestors are defensive, while owners still wish too much.<\/strong>\n\t<\/li>\n
- \n\t\t(Some of the) Banks pretend to be cool, but they are in trouble and they have to do something about it.<\/strong>\n\t<\/li>\n<\/ul>\n
\n\t \n<\/p>\n
\n\tFactors cause results… a new era for the Romanian Real Estate market<\/strong>
\n\tAll these can not last forever without causing more consequences. So, when the investors remain idle and several owners will be more and more pressed to sell, they will have to accept a lower price, in order to attract an investor. And as the economic environment will worsen, this procedure will be accelerated and more people will be stressed. Some of them will end up being "distressed".\n<\/p>\n\n\tIn the same time, the banks will have to decide: Are they going to continue helping some people who don't seem to be able to solve their problems? Are they going to take the property on their assets and register losses? How many millions can they lose? Is it easy for them, being subsidiaries of mothers banks located in other countries, to ask their main shareholder to send money for capital increase, in order to cover these losses?\n<\/p>\n
\n\tAll these and many more created a new era for Romanian Real Estate market:<\/strong>
\n\tThis era has already started and its main characteristics are:\n<\/p>\n\n- \n\t\tTransactions at "decent" prices will be concluded only when the properties are really good.\n\t<\/li>\n
- \n\t\tFor anything too big or not very good, the price will be much lower. (Very few people have access to money in order to buy properties worth more than 10 – 20 million Euro)\n\t<\/li>\n
- \n\t\tForeclosures will increase furthermore, as a difficult winter is coming soon.\n\t<\/li>\n
- \n\t\tThe owners who will insist in high prices will simply wait for some more years.\n\t<\/li>\n<\/ul>\n
\n\tExceptions:<\/strong>
\n\tProperties sold by "Prima Casa" law. <\/span>\n<\/p>\n\n\tTop – unique properties<\/span>\n<\/p>\n\n<\/ul>\n\n\tWhen did this era start? How long is it going to last?<\/strong>\n<\/p>\n\n\tIt has already started. We have been living in it since several months now. What is going to change soon will be how visible this era will be in our life. More and more people will need solutions to their problems and selling a property will be one of them.\n<\/p>\n
\n\tI would say that we will live in this period for at least 12 months. Some people say that it will probably last until the end of 2012, but nothing is sure yet. One thing is clear: We will soon realize that this procedure will accelerate, as the result of all the above mentioned. I would estimate it to be 12 – 24 months. I can bet that it will not be less than this. Unfortunately I cannot bet that it will not be more…\n<\/p>\n
\n\tTomorrow:<\/strong>\n<\/p>\n\n- \n\t\tLiving during a new difficult era<\/strong>\n\t<\/li>\n
- \n\t\t5 tips for an owner in order to protect his interests<\/strong>\n\t<\/li>\n
- \n\t\t5 tips for an investor in order to reach a successful investment<\/strong>\n\t<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
This year started with several experts predicting that the prices would rise. Life proved that this was not accurate, as the serious problems of Romanian economy keep on blocking the market's evolution. As June is about to end, it is more than clear that the Romanian Real Estate market has entered in a new era, […]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[216],"tags":[],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/4630"}],"collection":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/comments?post=4630"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/4630\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media\/59454"}],"wp:attachment":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media?parent=4630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=4630"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=4630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}