Players on the real estate market are expecting May 14 more eagerly than the Prague summit last year, when Romania was invited to join the NATO. Whereas joining the North-Atlantic Alliance made analysts hope for a wave of investors to come (which has not been the case thus far), the above-mentioned day will bring more certainty for investments than a military alliance could, the same analysts say.
The Parliament early this month endorsed Emergency Ordinance 10/2003 extending the deadline for the owners of nationalised buildings to submit proof to verify this until May 14.
The normative act also stipulates that once this deadline expires, any documents thereafter submitted or mentioned by anyone entitled to retrocession shall no longer be taken into consideration as evidence for settling the case.
Therefore, as of this date the legal status of the land and buildings will be much clearer, so that the real estate companies and investors in this sector will know for sure whom they should approach for negotiations.
"The fiercest battle will be after May 14," Dragos Dragoteanu, Euroest real estate agency general manager feels.
"We have prepared an office building project for a piece of land in Piata Victoriei area, which is partly conceded. We will not proceed to the actual construction until then, because a claim on the land may be filed in the meantime. After May 14, I will know for sure whom to talk to," Dragoteanu specified.
There are relatively few unencumbered pieces of land up for sale at the moment, so that the supply could increase and balance the supply/demand ratio as soon as the retrocession claims are settled.
"Whereas in 2001 one could still find locations on the main boulevards that were selling for $400 - $600/sqm, we can now positively state this supply segment practically disappeared from the market last year, as there were only four pieces of land up for sale. Under the circumstances, we may say the trend that will soon show will be buying old buildings lined up for demolition," said Alexandru Nitescu, head of Regatta real estate company's Projects and Investments Department.
"The conclusion of the property retrocession process will be a major necessary step, even though not enough, for clearing up the property regime in Romania. Besides carrying the retrocession procedure through (reducing the red tape/corruption involved in this process inclusive), it may also boost Western real estate developers' appetite for the Romanian market, if matched by other general macroeconomic and political measures," Sorin Panturu, manager of the Romanian representative office of Denmark's TK Development real estate developer concluded.
bogdan.neagu@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
