Houses from the historic area are selling better than the new ones

The rhythm of the real estate investments has slowed down, after the investors realized that they won’t obtain a quick profit from the constructed houses because the buyers don’t crush anymore to buy them. Moreover, the buyers’ behavior was also influenced by the avalanche of news that forecasted significant price declines, fact contested by developers.

According to the local Direction of Statistics, from the beginning of the year till the present, in Sibiu were build 1.262 houses, with almost 25% more against last year, of which 1.121 into town and 141 in the areas near Sibiu.

The investors have slacken the rhythm of constructions

Although the figures show that the investors have expanded their businesses in the real estate area, on the market persists stagnation, and the demand is practically blocked around some sums considered by constructors as being too small. The real estate market is confronting with a stand-by period, in conditions in which buyers expect that the prices for dwellings to drop. On the other hand, the developers don’t tend to do this, especially because the prices for construction materials and manual labour have increased and a decrease of tariffs would mean that they would be in loss. As such, the representatives of the real estate agencies and, indirectly, the investors, warn the people to don’t pay attention to diverse forecasts that announce the price drop, because it won’t happen. At least not till the end of this year.

In these conditions, many of the real estate development plans have slowed down the rhythm, the investors waiting for a more appropriate moment to use their money for constructions and to recover the money soon after a sale. Such company is Concefa Sibiu, that announced in the spring of this year that wants to raise not less than 400 houses, on base of a very expensive project worth of about 30 million euro. Recently, the businessman from Sibiu, Horatiu Cercel, who controls the construction company, stated that he had tempered its plans of real estate development, after he had noticed on the market the slow down of the sales for houses.

Transactions are smaller every day, and the buyers expect fall in price of the apartments

The demand of houses stopped from several months on the market from Sibiu, because of the rumors that announced a decline of prices. Although the potential clients are waiting with the money in their pockets, they aren’t sure if it is the best moment for investing. The real estate experts sustain that it can’t be about the drop in price of apartments, the main reasons being given by accomplishing the constructions: rise in price of lands, cement and ferro-concrete. Florin Bobe, manager of the agency Edil Sibiu, states that the only thing that could determine the drop in price for houses is represented by the decrease of constructors’ additional payment, but there are little chances for this to happen. Also, imposing in the Fiscal Code of that VAT of 19%, for each real estate transaction, it holds the offer in stand-by, because the constructors, prudently, have already added to the price the respective percentage. Also the representatives of the agency Intermed Casa confirm the fact that the real estate transactions are smaller every day and most of the buyers are expecting to a drop of prices.

Last year the offer lacked, now the demand

At the moment, an apartment with three rooms from the centre of Sibiu is worth on average 170.000 euro, one with 2 rooms about 120.000 in the centre and at least 75.000 euro in the limitrophe areas, while an apartment with one room is 40.000 euro in the centre and 30.000 in the periphery of the city. The real estate speculators rather prefer to invest in houses situated in the historic area, whose value isn’t in danger, than to buy apartments of which they wouldn’t obtain big profits. Interesting is the fact that on last year the situation from Sibiu was totally different, 2007 being considered by the experts the top of the real estate market of the last years.

During last winter, for example, there was a massive demand of houses, and the offer was of 20% in comparison with the level of demand. The statute of European cultural capital that Sibiu had in that period, brought many potential buyers, while the real estate agencies almost didn’t handle to find quick offers. The only ones that could influence the market evolution from Sibiu are the house owners, that don’t afford to wait buyers. And here we don’t make reference, of course , to the real estate speculators. But also these owners, in the moment in which from commodity or other reasons, resort to real estate agencies for selling their apartments, find out from here that they could cash with 10.000 euro more for each room, drop out to the idea to sell them by their own. And that’s how they continue to spin in a vicious circle.