Romania’s Real Estate Market Will Only Recover If Costs Drop
The Romanian real estate market’s recovery depends on decreasing the costs of land, taxes and infrastructure, so that the construction price nears a level that buyers can afford, Thursday said Calin Negoescu, partner within Westfourth Architecture.
“Land prices are too high and they weigh on the cost of the project, while infrastructure expenditure is higher than elsewhere. (…) I cannot be pleased to hear that the nearest electricity supply point is 8.4 km away, when the site is near (central Bucharest),” Negoescu said within a real estate seminar held by business daily Ziarul Financiar.
The architecture firm official added there still are projects where construction represents 50% of the costs, while the rest is the plot price. In addition, there are developers who disregard market requirements.
“There were plots sold at absurd prices, and many times there could not be any projects developed on those pieces of property,” Negoescu said.
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