According to Pop, who also owns Only For You fashion store chain, the funds were to be used for two residential projects, which are to be suspended. “We will not focus on the residential segment until next year, because there is insufficient market absorption. If this situation persists, we could change the projects into hotels, because the locations are good,” he told Business Standard.
However, Pop did not completely rule out the real estate field. This year, the businessman plans to start work on three office buildings, because demand is high on this segment for both purchase and rental. The projects will be financed with the company’s own funds and bank loans. Pop said obtaining a loan could be easier, as the land has already been acquired.
Last year, Eka Investment Group announced it owns several plots in Bucharest on which Pop plans to develop logistics and residential projects, in partnership with several Austrian investment funds.
The local real estate market has been seriously affected by the global crisis, with a deadlock especially on the residential segment, due to harsher lending conditions.
