The real estate market in Romania does not show signs of fatigue and introducing mortgages would stabilize prices, Economy and Finance Minister Varujan Vosganian said.
- Publicitate -
Introducing mortgages as real estate values would give birth to market for second-hand buildings, Vosganian explained.
Central bank governor Mugur Isarescu last week said data spread on the real estate market are exaggerated and figures scare Romanians as well as foreigners.
"Some say the market will stabilize or idle. These are mostly investors who are used to put in 1 leu and get out 2 lei. But as a minister I see the market is not worn out although it is likely prices would drop," Vosganian said.
The minister explained prices are fueled by players' expectations besides offer and demand. "Differences between market and expectations generated prices above the market's capacity. When expectations temper prices temper too."
The central bank and the National Union of the Romanian Notaries Public (UNNPR) are currently working on an indicator of the real estate market which consists of a book of statistics aiming to offer a clear and objective perspective over the market.
NewsIn
