Loading ...Real estate developers that still have liquidities at their disposal are advised to acquire as many plots of land as possible from such companies in the field found in a much more difficult situation, with negotiations in such cases to result in price-cuts of up to 50%, reads a release of the Quantum Consulting & Management (QCM) agency.
According to specialists from Quantum Consulting & Management, in the context there are significant chances the value of the plots of land to go up again in the next interval, giving up building for now might be good investment.
According to specialists from Quantum Consulting & Management, in the context there are significant chances the value of the plots of land to go up again in the next interval, giving up building for now might be good investment.
It all depends on the location and acquisition price. For instance, if plots of land downtown represent now an opportunity, the increase in their price will still remain insignificant, while a better investment will be represent by the acquisition of such plots of land at the periphery of the cities, which have access to urban transport and utilities, as their growth potential is now much more significant. We advise you to buy now as many such plots of land as possible from the companies in the field that are currently dealing with serious difficulties, as you will be able to negotiate the price up to 50%, if you have the necessary liquidities,” the representatives of Quantum Consulting & Management said in a release.
In the latest month, at least 8 real estate developers announced freezing or limiting of their projects announced initially, with such information existing according to which some of the real estate developers sell their properties in order to get liquidities. The small real estate agencies announce their exit from the market, while such more experienced companies consider they still have a few trumps at their disposal to launch in the game.
The representatives of Quantum Consulting & Management say there exist solutions for the real estate developers which are currently dealing with difficult situations, but with such solutions being in the hands of the investments funds specialized in financing business in difficulty (funds which are usually full of liquidities, which finance major projects, although the price might reach 50% of the future profit of the company).
According to specialists of the QCM, the speculators on the national currency and the banks, which are not prepared yet to face new risks, were the factors hat caused this bad situation for the real estate developers. To this are to be added also “ the obscure arrangements between banks” and “the greed of the banks” that charge the developers “with their mistakes hoping for a quick recovery.”
“Banks have adopted a stiff position because of the lack of liquidities or because they are afraid of not being able to recover the credits once the construction is finished,” specialists from the QCM say.
There is need of some 30-35% of the value of the project to be invested in the foundation and structure, with 50-55% to be needed for finishing and 10-15% for utilities.
There is need of some 30-35% of the value of the project to be invested in the foundation and structure, with 50-55% to be needed for finishing and 10-15% for utilities.
Specialists from QCM also say freezing a project or exiting the market represents always the worst solution for the image of a real estate developer on both the national and international level.
“Generally, a businessman needs to prove he has the strength not to get frightened and not to give up, trying instead hard to find solutions to help his company come out of the crisis with minimum loss and with a clear image,” Andrei Apetrei from the QCM said.
“Generally, a businessman needs to prove he has the strength not to get frightened and not to give up, trying instead hard to find solutions to help his company come out of the crisis with minimum loss and with a clear image,” Andrei Apetrei from the QCM said.
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