BNP Paribas: real estate assets in Romania still expensive

Romania does not offer favourable conditions for the investors interested in buying real estate because prices are still high, say BNP Paribas Real Estate representatives, but who, however, see a good opportunity to develop housing priced up to 100,000 euros.

"This year is not a good moment for international investors to buy property in Romania. The market is non-transparent, the investors do not have access to information on the real estate sector, and the difference between the prices requested by the seller and the buyers are willing to pay is still significant", the Deputy Executive Director of BNP Paribas Real Estate, the real estate division of French group BNP Paribas, Henri Faure, told the Mediafax agency.
In his opinion, under these circumstances, the developers that will not adapt to the market by lowering prices will have the most to suffer.

On the other hand, the BNP Paribas Real Estate representative considered that a very good opportunity on the Romanian market this year would be the development of housing priced up to 100,000 euros, to benefit from a payment of 5% VAT.

"The developers must adapt to market needs, to study better its future development. The development of such housing could be a solution to unblock the market," said Faure.
He noted that the most optimistic variant for the real estate market is a change of conditions from the second part of the year, if financing will be unblocked.

BNP Paribas Real Estate is present in Romania through Atisreal company, which acquired the Romanian company Cornerstone International last year. The Bucharest office provides brokerage, consulting and evaluation services on the residential segment, offices and investments.

"This year, we will focus on developing these activities, and, probably, from 2010 we will also bring to the Romanian market other services, namely property management and asset management," Faure mentioned.

The Executive Director of BNP Paribas Real Estate Property Management, Laurie Leclerc, said that, on this segment, the company is interested to buy a Romanian company or to enter into a partnership.

The Group holds three more companies in Romania, respectively Centelem in consumer credit, Cardif - insurance and Arval - leasing.

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Source: http://www.curierulnational.ro/In%20brief/2009-02-06/BNP+Paribas%3A+real+estate+assets+in+Romania+still+expensive