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Economy minister Vosganian expects real estate prices to stabilize

de A.C.
Luni, 21 aprilie 2008, 14:46 English | Business

Prices on the Romanian real estate market will stabilize due to both high demand and the introduction of the mortgage as estate value, Romanian Economy minister Varujan Vosganian declared at a seminar organized by Romania's National Bank together with the Romanian Banking Institute. Vosganian added that he did not consider the market fatigued and he foresaw a dynamic recovery. 

Vosganian says that prices on the real estate market do not reflect just the demand and supply but also the players' expectations. He added that in his view, prices would stabilize and in the same time decrease gradually.

Romania's National Bank governor Mugur Isarescu said at his turn that last week's high prices only scared real estate agents and buyers. He requested public notaries to provide statistical data on the real prices of the real estate transactions.

Isarescu argued that the data would help determine if the estate market is really going to face trouble or whether it is stable. However, Isarescu admitted that, if prices were real, then the market will go down.

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