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Romania Real Estate Report
Emerging Markets Direct, Dec 2010, Pages: 4
The IntelliNews Romania Real Estate Sector Report offers an extensive summary of the most recent topics related to the Romanian construction market, segmented into residential, office, industrial and retail space, as well as construction materials. It includes complete coverage of the latest market developments and news, accompanied by thorough statistics and comments. The report pays particular attention to new development projects and investment inflows in the sector. This sector report is ideal to keep you abreast on recent company and industry news. Written by local professionals, it is a unique market and business intelligence analysis, tailored to save time by providing in-depth information, while helping you to make confident and informed business decisions.
The credit crunch in late 2008 put an end to the exuberant expansion of real estate developers and further investments will hopefully reflect the lessons learned after two years of reflections. In the meantime, developers are struggling to settle their contracts with banks, customers and constructors. Apart from residential customers having invested their own money, none of the parties are really eager to close their balances as this would mark significant losses.
In brief, investments were value-added in the single sector that was not developed by the communist regime for obvious reasons: office buildings; logistic parks, much needed under a globalised economy, is another area where investments were welcome and are still needed – but this also depends on public investments in the transport infrastructure. The vast amount of industrial and residential stock made additional investments unnecessary; consequently, the investments in the residential sector were stopped immediately after the credit crunch revealed the magnitude of exuberance in this particular area. The upgrade of old residential buildings is the next logical step for construction companies wanting to address this segment.
In the industrial sector, the stock of properties has actually decreased as industrial sectors were significantly downsized. As for the retail segment, the story is mixed: while delivering certain public utilities, it also missed a great opportunity and investments resulted in much less than optimal – given the size of the investments and the market’s potential.
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