Business Magazin covers extensive analysis of the crisis impact upon the Romanian real estate market. The latest issue of the magazine questions the trends on the market, the changes in investment habits and the challenges both professionals and clients are facing.
Beatrice Dumitrașcu, our VP Residential Sales was invited to speak about changes in the premium real estate market and how the current situation will impact future decisions for those who intend to invest in properties.
”At the moment, the demand on the luxury real estate segment – the one we operate on – is still good. It is true that March fell sharply, but this changed in April, when the residential sales exceeded the previous month. Yes, it is true, this real estate segment is a special one, and consumption habits are different. As a result of this crisis, customers will think more carefully where they invest their money, and developers of quality products situated in exclusive locations will have an advantage. Over 80% of our apartments are already pre-contracted, and the down payments are on average 40-50%. We estimate an increase in trading in the coming months, also determined by the monetary easing implemented by the central banks, as well as by the demand accumulated in the last 2 months. After all, apartments offer the best protection overtime against inflation and the decline in the value of money.”
What about property prices? Will they increase or decrease? Beatrice believes good properties will be slightly more expensive. ”Properties with unique locations, such as those that we develop in exclusive areas in Herăstrau, Floreasca, Charles de Gaulle Square will not decrease in price, on the contrary, they will be more expensive. This will also happen because it is very possible in the future to witness a devaluation of the main currencies, the euro, and the dollar, in relation to quality assets, be they shares or real estate.”
How will this challenging period influence real estate customers' and developers` behavior? We will most probably witness a flight-to-quality change. “There will be a change in investment behavior and a greater responsibility and focus on quality. Sustainable developments will only gain. To all these, location is added: the area where the project is located will make the difference when we talk about real estate”, Beatrice argues.
Full e-magazine here.