Romanian 'prices may collapse'

Country:  Romania

11 August 2008

Romanian property prices could be on the verge of plummeting, due to higher interest rates and plans for restricting private borrowing, experts warn.

In a letter published recently by the local press, the Romanian Bankers' Association asked the country's central bank to impose less credit restrictions otherwise "home prices may collapse."

The central bank is to publish new regulations aiming to restrict private borrowing, which increased 63.4% year-on-year to June amid a lending boom.

On the other hand, analysts say the central bank will most probably maintain the current interest rate at around 10%, which is the highest in the European Union.

Sales of new apartments dropped by half during the first half of this year, compared to the monthly average in 2007.

April and May saw the largest drops due to rumours about a Romanian property market crisis.

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	Price: 25 Euro/sqm Type: Land
	SECOND LAND Long: 657 meters - opening to the access road Wide: 32 meters Total of ~21000 sqm The requested price for this land is 25 EUR/sqm
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	First Land, Bucharest, Romania
	Price: 25 Euro/sqm Type: Land
	FIRST LAND Long: 834 meters Wide: 21 meters - open access to the highway Total of ~17500 sqm The requested price for this land is 25 EUR/sqm
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	Third Land, Bucharest, Romania
	Price: 35 Euro/sqm Type: Land
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