Irina Caraene, Sales Director at Cordia Romania, analyzed, together with the participants at the “Focus on Residential” panel during the autumn edition of the Real Estate & Construction Forum”, an event organized by Business Mark, the impact of the new tax measures on the residential segment.
„The fact that certain tax breaks will be reduced or eliminated will clearly lead to a decrease in the property purchasing power. In our case, more than 20% of our customers are IT-people, who have bought two- or three-bedroom apartments. The construction tax measure will clearly lead to an increase that will be seen in prices, because labor will be more expensive”, said Irina Caraene.
The new tax measures come against the backdrop of an already struggling residential market, with falling supply of new apartments and restrictive lending conditions.
„In each project there will be investors who will come with their own sources, they will buy through their own companies, we will have people who are just starting out and accumulate two salaries to buy, we have Prima Casă, Noua Casă. We have people who are investing cyclically and putting their income aside. It hasn’t been an easy year in terms of lending. Now there are only two banks offering acceptable interest rates and the waiting times to get a loan have increased. In a project, at least 30-40% of customers will access credit. At the end of the day, not all buyers are the same and everyone needs to have access to the financial side to purchase”, explained Irina Caraene, Sales Director at Cordia România.
Read HERE more about how developers see the housing market evolving.