Home prices have fallen by 40-50% over the last two years, butthe city continues to be full of "for sale" ads hanging by thebalconies of the blocks of apartments. What are the players on themarket saying in their defence? Developers claim they cannot cutprices below the minimal level agreed with banks, which in turn saythat they have the best interests of their depositors at heart. Atthe same time the old apartment owners set their asking price "asthey see it on the Internet."
"What more miracles are developers waiting for? Do they stillwant to sell apartments at 10,000 euros per square metre inPrimaverii area as they used to? This won't ever happen again. Onlyviable projects will keep their prices as they are. Homes built inthe middle of a field outside the cities, with no utilitiesavailable, will end up being sold brick by brick," says DoruLionachescu, main partner of Capital Partners investment firm.
Mihai Bogza, chairman of Bancpost, says that banks anddevelopers share a mutual interest, i.e. to sell the project insuch conditions as to allow for the repayment of the loan and thatthere is a certain flexibility, though limited, innegotiations.
"Avoiding losses has become a target under the currentcircumstances on the market. If you break even, you can consideryourself lucky," says Ionut Dogaru, country manager of SpanishGrupo Lar, developer of the Natura Residence and Serena projects inBucharest.
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