“We are no longer talking about a crisis but a readjustment of the market – real estate developments have resumed, clients have multiple lending options to choose from, housing prices have not dropped sharply but have adjusted and the number of real estate deals was higher than in 2012 (…) We may say the market is maturing,” Alina Necula, head of marketing & sales for real estate developer Adama, told MEDIAFAX.
Necula said there were many clients in 2013 who bought homes using their savings and the occasional additional bank loan.
Adama, owned by Austrian group Immofinanz, completed new stages in residential developments Edenia Titan and Evocasa Optima in Bucharest and started works on the last building of the Copou Bellevue residentail development in Iasi. The company sold an average 15 homes a month, 25% more than in 2012.
The market is expected to stabilize in 2014 but that also depends on the future lending policies of banks.
“Recently, the banking sector has been sending positive signals – interests on loans in lei is decreasing, banks have started marketing lending programs which rival the First Home program. We expect to at least match the sales of 2013 next year,” Necula added.
Romanian developer Conarg also sees next year’s sales matching those of 2013 and expects a slight increase.
“Since 2014 is an election year, we expect some legislative relaxation in terms of next year’s First Home program and bank financing for clients and developers alike,” said Mihai Vidat, management-marketing director with Conarg, developer of the 1,000-apartment Rasarit de Soare project and the 240-apartment Quadra 2 project in Bucharest.
In 2013, the company sold 143 homes in the two residential projects.
Israeli developer Tagor completed this year the first stage of the Adora Urban Village compound in Bragadiru, near Bucharest, with 75 apartments, and started works on similar developments in Pipera, Arad, and Timisoara. Sales in the first completed project were below the developer’s expectations.
“We expect to sell half of the apartments in Adora Urban Village in January 2014. we were hoping to sell more homes in 2013, when the project was nearing completion but buyers preferred to wait. But sales were acceptable especially in the light of changes to the First Home government program, which has eliminated loans in euros and exclusively allowed loans in lei,” said Tagor owner Ofer Lieberson.
Lieberson is optimistic about the real estate market in 2014 and the company is starting three new projects, each with around 100 apartments in the first stage.
Gabriel Voicu, director of new homes with Coldwell Banker Affiliates of Romania, the most active real estate consultancy company on the domestic residential market, said the number of real estate transactions was higher in 2013 than in 2012.
“In 2013 we sold over 400 homes in large residential developments alone. As the First Home program switched to financing in lei only there was an immediate drop in demand. Later, in November-December things improved and demand shot back up,” said Voicu.
He added he expects a slight rise in the number of transactions in 2014.
Officials of the Militari Residence development in Bucharest said 2013 was an agitated year but a better year for real estate than 2012. The developer maintained its sales pace at 60-80 apartments a month.
“Sales exceeded our initial estimates. The First Home program had a positive impact on sales volumes. We expect demand to remain constant in 2014, especially from young families seeking new housing. Certainly, continuing the First Home program is vital for both newly-built and old residential sales,” officials of Militari Residence said.