Consultants forecast that the interest of investment funds in “distressed” properties will be obvious in the second half of this year. “The lack of transactions in the first half was foreseeable. I believe we will witness transactions as of the third quarter. Banks have already gathered too much liquidity and they must circulate this, or else they will have problems,” Andrei Diaconescu, Partner of the Capital Partners investment company, told Business Standard.
“No transactions have been made in the first quarter of 2009, after a long period of liquidity shortage. As a result, there are no market indicators to support price analyses,” indicated a report by Colliers International regarding the local investment market. According to the report, “distressed” property is expected to appear on the market in 2009. This type of property is traded at prices below the level considered normal for a market.
“Millions of euro are collected by funds that are targeting the European distressed property market. Some funds have already allocated budgets for these markets, and expressed a preference for Romania,” the analysis said.
