Wednesday, July 9, 2008

Developers deliver fewer flats than promised for H1

Approximately 1,200 new flats that had been scheduled for delivery in the first half of this year have been delayed, as the construction market is experiencing a serious personnel shortage, the weather in the winter was worse than during last year's winter and construction permits were issued later than they were supposed to.

The projects that had been expected to be delivered in the first half of this year include complexes like Planorama (Colentina), Residenz (Chitila), Primavara (Drumul Taberei) and Ibiza Sol (Pipera), which are multi-stage developments. They have all been pushed back by three months on the average.

One of the first large complexes started in Bucharest was Planorama, in the Colentina district, comprising four blocks with a total of more than 1,000 flats.

"The first block of 280 flats should start being delivered in August. They have been working twenty four hours a day but the volume was extremely high and personnel turnover in constructions is high," explains Ionut Botea, sales consultant of Prime Location, which handles the sale of the homes in this project.

The first delivery deadline had been set for the end of 2007, after which developer Euro Habitat announced the first block would be delivered in April this year. For each day of delay those who bought homes in this project will be reimbursed 0.02% of the acquisition price of the flat, which may amount to over 5% for those who bought off-plan.

On the other hand, buyers of the first stage of the Residenz complex in Chitila, developed by Tiriac Imobiliare and LBBW, are already moving in the 136 homes, though three months later than they were initially supposed to, that is March 2008.

"Residenz clients of the first phase are already moving in their flats and we anticipate to have them all moved in by the end of August, as final sale-purchase deeds are completed. We delayed the first phase by three months because we were unable to find skilled workers all the time," says Ruxandra Buca-Chendi, marketing manager of Tiriac Imobiliare. Delays happen at a time when the number of flats completed in Bucharest has been very low in recent years. The main projects that were delivered include Central Park, Quadra Place and Emerald Residences. However, a record number of homes are scheduled for delivery on the Bucharest market by the end of the year, approximately 6,000, double the number delivered last year.

Besides workforce problems, a series of developers have also had trouble getting their construction permits, which caused even more delays to their projects. Therefore, out of the 104 flats of the Ibiza Sol project that were supposed to be delivered in March, only 50 have been turned over to their owners, with deliveries starting at the end of June.

"Works fell behind the original schedule, because it took two months more to get the construction permit. It was supposed to be issued at the beginning of June 2006, so that works could begin in July 2006, but the Voluntari Town Hall only issued it on September 4, 2006," explains Alexandra Moldovan, marketing officer of Spain-based Ibiza House company.



No comments: