Land value - the asking price versus the market
The Romanian market for land plots is heavily influenced at the moment by the limited offer. Several ‘first-wave’ investors accumulated large amounts of land, bought for speculative purposes rather than development. As a result, a very small proportion of the available land for sale is owned by small investors. The relatively low number of (big) land owners can push the price to unrealistic levels, waiting for richer and more powerful investors. Such expectations led to increases of up to 50-100% since the begining of 2006.
In spite of the high values of the advertised prices, the market demand still managed to regulate the transactions. A good example is Constanta where, in spite of typical asking prices of €1000/sqm, the selling price for prime plots is €1000/sqm.
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Posted: October 8th, 2006 under Apartments.
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