ANALYZING THE ROMANIAN RESIDENTIAL MARKET UNDER THE GLOBAL ECONOMIC CRISIS EFFECT

Abstract

As the financial crisis effects continue to spread around the world, Romania is no exception to the global economic climate, as the country continues its attempts to better integrate into the European Union. To what extent is the Romanian residential market affected by the United State financial crisis? What are the causes and effects of the Romanian crisis? How has the crisis evolved so far and our prognostics regarding it? These are some of the questions to which we answer in the present article. We will take into consideration factors such as the residential market of both new and old products, comparing their evolution up until March 2009 and studying their prices, units sold, and latest projects focused on our nation’s capital. Our prognostics estimates that the residential market will start the process of revitalization by Q4 2009 – Q2 2010, when the great demand will be sustained by good bank credit loans.mortgage subprime loans, the contagion effect, the cumulative causality effect, the herd effect, reference interest rate, credits, fiscal facilitation, developer financing, real estate transactions, constructions, sales prices, demand, offer, BREI-N, BREI-V, speculative investments