New apartment prices up, land prices expected to fall
31 October 2008
Prices of new apartments will rise, while land prices are expected to fall, the real estate developers said during the ''Focus: 2008 Real Estate Market'' seminar. They expect the residential sector to recover only in next year's fall due to the international financial crisis. Sale and rental prices for offices are expected to rise, due to a drop of over 50% of the space that was due to be delivered within the next two years, the realtors said. The logistics segment is the only one with potential, because it is still in the early stages of development.
Home buyers will be the most affected by the crisis, not only due to rising prices, but also on higher loan instalments, said Shimon Galon, Chief Executive Officer of the GTC Romania developer.
Mall developers will continue to concentrate on cities with over 100.000 inhabitants, and many projects that have not secured financing risk will freeze, said Colliers Real estate consultancy company.
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