“Sales went very well, especially in the second half of the year. The Adora Urban Village is 70% sold and Adora Park Arad is 35% sold. All Adora projects in Romania are owned by British investment fund Patron Capital and are managed by Tagor, officials of Israeli developer Tagor told MEDIAFAX.
Tagor and Patron Capital invested EUR7 million this year in the Adora Park Arad project and started works on Adora Pipera, an investment of EUR6 million. Also this year, the British fund started works on a residential project in Timisoara, Adora Forest, a EUR7 million investment.
For Adama, a developer owned by Austria’s Immofinanz, 2014 was a year of stability and slight growth. The developer’s sales rose 30% on the year.
“A notable trend, that had disappeared during the crisis, is that homes are again being acquired during the construction stage,” said Alina Necula, head of Adama Group marketing and sales.
Adama’s post-crisis investments on the local residential market amount to EUR16 million. The company will continue residential investments in Romania, focusing on Bucharest and other large cities on the medium term.
In terms of prices, consultants see 2014 as a year of stability with no major fluctuations.
“Although the number of deals this year is higher than in 2013, prices remained constant considering the volume of available new housing delivered in 2014 was higher than the average of 2007-2008,” said Andreea Comsa, managing director of Premier Estate, which has a portfolio of nearly 1,600 apartments and villas.
The residential market rebounded this year due to stable prices, the government-backed mortgage lending First Home program and a VAT of just 5% on homes of up to RON380,000. Lending conditions have also relaxed, with lower interests and lower required down payments.
Since the beginning of the year, over 20,000 apartments were put on the market in Bucharest, nearly 20% more than in 2007, before the crisis.