Romanian Property Sales Show Significant Decline

The latest property figures from Romania have shown that sales of real estate have dropped by 27 percent in January compared to the same period last year.

According to the Balkans Business News, 17,302 property transactions occurred during January 2009 compared to 23,778 in January 2008 – a drop of 27.3 percent. Taking into account January 2007 figures which show 30,474 real estate deals going through, the picture is even worse with a fall of just over 43 percent.

There are several reasons for the decline in property sales – the first being the current global climate which is making most investors and property purchasers think twice about buying real estate. Secondly, there is a closing gap between supply and demand with easier access to bank loans and mortgages opening property purchasing up to a larger segment of the population.

Pessimists in the country and predicting that some real estate may lose up to 90 percent of it’s value, however many believe that although the Romanian property market still has some way to fall, the losses for the majority of real estate investments will not reach this drastic level.

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