America’s mortgage loan crisis will not affect the Romanian real estate or investors active in the industry as prices are not expected to fall owing to high demand and a slew of deals are still in the pipeline.
America’s mortgage loan crisis will not affect the Romanian real estate or investors active in the industry as prices are not expected to fall owing to high demand and a slew of deals are still in the pipeline, real estate analysts say.
Foreign investors will not leave the Romanian real estate market, analysts believe, especially because the beginning of the fall usually means more real estate transactions. Lending terms offered by banks are not as relaxed as in the U.S. and the high level of bureaucracy makes loans more inaccessible, the managing partner of EuroMetropola real estate company Monica Marin said.
The official noted a decrease in the price of houses would be possible only if the number of houses would increase yet demand remains high, especially in Bucharest. America’s mortgage loan crises troubled the banking and real estate markets all over the world, prompting Europe’s Central Bank to inject money into the private banking market.
Europe felt the effects of the crisis after prices in the real estate sector fell. Latvia reported a 5 percent decrease while Ireland saw prices on the real estate market fall 3.3 percent.
