“I believe that the “First Home” program will unblock most of the market, because both construction companies and investors are involved in this process. When investors will see signs of unfreeze, they will be more confident in the other segments of the real estate market too. I do not see a real unfreeze sooner than one and a half years,” the Development Director of the Centerra Capital Partners investment fund, Shay Mor, said.
The government adopted yesterday the necessary law modifications that will allow real estate developers that built homes based on mortgages to enter the “First Home” program. “You can build a home from scratch, and benefit from a governmental guarantee worth €60,000. You can buy a partly finished home, and get a €60,000 guarantee from the state or you can buy a finalized home, either mortgaged, or not by the constructor, so that you can enter in its possession,” Prime Minister Emil Boc said.
“Theoretically, the program should work, but I am not sure yet that it will unblock the other market sectors as well. I do not believe that there is a direct connection between the segments of the real estate market, except the real economy,” the General Manager of Hercesa Romania, Alejandro Solano, said.
Since the beginning of July 2009, the average daily number of transactions scheduled through the signing of pre-contracts was 2.6, according to an analysis by MagazinulDeCase. On the price segment of up to €60,000, there was a 600 percent increase compared to the previous months in 2009, when the daily average was 0.4 pre-contracts.
