ANEVAR: Value of real estate deals is not credible

The National Association of Romanian Valuers (ANEVAR) considers the value of Romanian real estate deals is not reliable as the actual value differs from the one declared at the moment ownership transfer documents are sealed. "In Germany, over 85% of real estate deals are completed through banks, while in Romania 85% of deals were cash ones and this is why price information is not trustworthy," stated Adrian Vascu, former ANEVAR chairman and head of KPMG assessment department. He added that together with the NBR, ANEVAR is working to draw up some joint valuation norms that are set to be applied by banks during the assessment process prior to their granting of funding. "We've had several meetings with the NBR and the Banks' Association to draw up some collateral monitoring methodologies. The role is to support valuation processes," Vascu said. He explained that during the past years, banks had accepted collateral whose value was supposed to rise in the future, but the issue of revaluation came up once the real estate market collapsed.