"This is a direct consequence of the fact that clients for the medium and luxury segment are not being granted mortgages under the new regulations enforced by BNR [Romania's National Bank], on one hand, and because those who have liquidities are reluctant to block them in such acquisitions, on the other hand," according to DTZ Echinox Consultant Oana Lungu.
BNR enforced new lending rules for individuals, in an attempt to curb consumption and lower risks for both lenders and clients.
This led to a significant slowdown of sales and made those who were planning to sell their properties to change their plans. Thus, they would rather let their properties, instead of lowering the sale prices. "Owners saw the opportunity (...) and rose the rental prices," Lungu added. (NewsIn)
