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BUILDING SITES: Residential construction slowdown in the second half of 2016
English Section Publicat de Elena Icleanu 08 Sep 2016 12:44
The access to finance for the purchase of housing has become a problem in the second half of this year in Romania, after amid discussions on the adoption of the commissioning payment, as the funds allocated for buying homes through Prima Casa (first home) programe (totaling 1.69 billion RON) have been fully exhausted. After approving the law, which has led to significant advances requested by banks, even the supplementation of 500 million RON of the funds for housing acquisitions through Prima Casa was consumed very quickly. In this context, the pace of housing sales was significantly reduced in the second half of the year, and reductions were reported also by the statistics on construction of residential buildings, and also issuing new construction permits. In the first part of August 2016, Finance Minister, Anca Dragu, said that Prima Casa program has a grant approved worth 8.1 billion RON for 2016, the amount of which was used only a small part until now. According to the Finance Minister, the Romanian Government is considering supplementary funding to banks on 'short-term', and a decision in this regard will be taken in September 2016. Regarding the office market in the first half of 2016, there were ended 47,500 sqm of office spaces, and in the next 18 months, there will be about 165,000 square meters of office spaces completed on other business centers. Overall, according to data available on the Romanian real estate market, in 2016-2017 the supply of modern office spaces in major regional cities of Romania will exceed 210,000 sqm. By the end of 2017, the total stock of Cluj-Napoca, Timisoara, Iasi and Brasov could reach 800,000 square meters. Regarding the industrial zone, it will develop in the next period depending on the demand in the sector.
 
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