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Real estate: DTZ Echinox: 2012 the most difficult crisis year
The year 2012 has been the most difficult since the beginning of crisis because of domestic and foreign factors affecting the Romanian market, according to Mihnea Serbanescu, the general manager of the real estate consulting company DTZ Echinox, which estimates this year business comparable to 2011. DTZ Echinox concluded affairs of 12 million lei in 2011, on the rise from 11.6 million lei in 2010.
“Our consultants have maintained a constant rate of concluded deals. I estimate this year we will have a business figure comparable to that of 2011. In my opinion, this was the most difficult year of crisis, because of the impact of sovereign debts in the euro zone on the Romanian market and of political unrest. Domestic and foreign factors have affected the market,” Serbanescu said. He thinks the new element, and a positive sign at the same time, is the fact that banks have started selling outperforming stock.
“In all real estate segments, apartments, office buildings or commercial ones, banks have become more active. The new element for 2012 is that banks have started selling outperforming shares. Portfolios of apartments from all cities, lands, factories, warehouses, and malls have been brought out for sale. The problem is the shortage of buyers,” Serbanescu said.
Although in term of transactions the banks’ aggressiveness did not mean much in the market, he says it led to an increase of the potential buyers’ interest.
On the other hand, Serbanescu considers that in the conditions of political instability in Romania, there are no arguments justifying the differences in concluding transactions in Romania (10%) compared to Poland (5-6%).
DTZ, a part of UGL company, is one of the largest international groups in the field of real estate services. DTZ Echinox offers a wide range of complete services for investors, landowners and tenants in all sectors of the real estate market.