The lower deals value is due to the international financial turmoil that has made investors more cautious and led to harshened financing conditions, according to DTZ Echinox Consultant Daniel Mitarcu. “In the first six months, we had no land deals on the corporate segment, while on the mid-sized segment we sold only a 3,000 square meter plot, and this at the beginning of the year,” he added.
In the first half of the year, many players on the real estate market, including major international developers such as Dawnay Day and Fadesa, postponed several projects, as they were unable to repay their loans, and announced they would try to attract new lenders for refinancing.
Furthermore, several projects were delayed beyond the grace period stipulated in the contract.
New apartment sales dropped 50 percent in H1, while most deals involving old apartments were postponed for the second half of 2008, as owners are waiting for prices to settle.
