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Real estate: Analysis: Romanian real estate market depends on bank credits
The Romanian real estate market is still dependent on bank credits because of the low development of the stock market, compared to other European countries where there is a tendency of increasing the share of financing from non-banking sources, a DTZ analysis shows.
“Although there is a tendency in Europe to increase the share of financing real estate from non-banking sources, such as the issue of corporate shares or bonds, Romania is still dependent on bank credits because of a poor development of the stock market. For that reason, investment funds with properties in Romania which usually tend to attract resources from the stock market do that elsewhere and not in Bucharest,” said Marius Grigorica, senior business analyst DTZ Echinox in a press release.
“We estimate that investment funds will supply the market with 181 billion dollars, an amount available for new credits in Europe over 2013-2015. That will determine an increase of their share in the overall debts in Europe from 2 to 7. Great Britain will be leader, with a market share increase of the non-banking sector from 7% at present to 15%”, the press release shows.