Israeli developer Carmel Investments Group (CIG) said it would invest 400 million euros in four residential projects in Romania and has no intention of changing plans as it considers the crisis period will pass away, and that one thing is for sure: demand for housing units exceeds offer by far.
CIG made its move in the Romanian market three years ago, and found a “strong but instable market with many investors”. Nowadays, the market is facing gloomy times, and developers feel the utmost of their impacts.
“The market is in stagnation. I think there is a general psychology which is coming from outside Romania which is taking on everybody. Obviously everybody is affected by the huge crisis outside, and is waiting to see how things will happen”, said Jacques Beer, CEO of CIG.
Beer thinks the apartments stock must be renewed, and in Romania, there are many old apartments, and at the same time, many lands to build on. Therefore, within approximately two years, the developer sees a flourishing period for the residential market, even if many players and buyers are waiting now.
“I’m sure there will be another boom, the question is when. Right now, how long it will be, I don’t think anybody knows. It has to do with factors which are not really Romanian factors” said Beer, adding that the situation in the United States is serious, and the government is dealing differently and very aggressively with the problems.
“You don’t hide your problems; you can’t play games with the problems. The American government is dealing with it very strong, on a day-to-day basis; they are making the wildest type of things, things that nobody would have expected to see in America, because they have a job to do, they will fix it. This is what they are all about”, CIG’s CEO added.
Beer admits that the buyer’s behavior is affected, as he is unsecure and waits to see h
