Disaster on the Romanian real estate market: Transactions dropped 98%, up to 12 million Euros

The volume of transactions during the second trimester of this year reached the lowest level in the last 5 years. The decline is also significant for the first six months of the year in course, compared to the same period 2008.

Real estate sales in the period April-June cumulated only 12 million Euros, which translates in a 98% drop when compared to last year’s period. In the second trimester of 2008, the total sum from transactions was 119 million Euros.

Not even the review for the first six months of this year is not encouraging. The volume of transactions shows a 90% market drop, compared to last year’s period. According to Costel Florea, investment director of Cushman & Wakefield Romania, the low rating Romania has and the current economical instability is the main reason why companies are reserved in new investments.