"The concept of prices" that developers would "no longer much, because all the buildings were financed by the banking system, which puts downward pressure on prices, which eliminates much of the profit margin that companies have anticipated one of these apartments. There are already significant decreases in share prices on the apartments in November. In addition, there are projects between developer and financier, so the manufacturer to apply a very large reduction in the price of apartments and mortgage bank to provide good conditions for this segment, "he said Alpha Bank, Sergiu Oprescu, cited by Mediafax. He believes that will revive the housing market only when developers will find clients for projects of the last two years, provided that the "first house" is insufficient because the funding is used primarily for old houses.
"However, the program is not enough that very few of the applications received were directed to new construction. Under the program, it uses very little money to buy real estate developments of the last two years, which are really likely to revive the property market ", considers Oprescu.
He also stated that the money taken by the "first house" are used mainly for buying old homes, given that most newly built apartments are located in Bucharest, and their prices are probably higher than the limit imposed , of 60,000 euros.
As regards the bureaucracy that accompanies the program, Oprescu says that it takes an increasing "the ability to actually draw money. "I think we can tweak little fund flows between banks and to shorten response times to learn the entire ceiling by the end of the year," added Oprescu.
Apartment prices in November fell in the first half with 12% against the end of last year, reaching an average of 1415 euros per square meter built or Euro 1685, VAT included. Discounts ranged between 4% and 32% and occurred more strongly in the second quarter, as a reaction to the lack of transactions in the first quarter.

Posted by Oana Voinea
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