Real estate market slows down to 43% to EUR 902 million
26 September 2008
Real estate market slowed down to EUR 902 million in the first half of the year, down 43% on the year, consulting company Jones Lang LaSalle said in a report. The decreased value of real estate deals reflects the international financial turmoil that has made investors more cautious and led to harshened financing conditions, according to DTZ Echinox Consultant Daniel Mitarcu.
''In the first six months, we had no land deals in the corporate segment, while on the mid-sized segment we sold only a 3,000 square meter plot, and this at the beginning of the year,'' Mitarcu added.
In the first half of the year, many players in the real estate market, including major international developers such as Dawnay Day and Fadesa, postponed several projects, as they were unable to repay their loans, and announced they would try to attract new lenders for refinancing.
Furthermore, several projects were delayed beyond the grace period stipulated in the contract. New apartment sales dropped 50% in the first half, while most deals involving old apartments were postponed for the second half of 2008, as owners are waiting for prices to settle.
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