STUDY ON THE ROMANIAN REAL ESTATE MARKET - RISE AND FALL

Our paper aims at depicting the Romanian economic reality of the real estate market, in the circumstances of the global economic crisis. There are at least two factors that could be answers to this real estate chaos. Firstly- the greed of both "players"- the bankers, who have lent money in exchange of unjustifiably high interests and in their turn, the entrepreneurs, who on one hand were willing to pay these interests in order not to lose the opportunity, and on the other hand they would recover the money anyway when they put on sale the villas and the apartments built. Secondly- Romanians' recklessness to take out large loans that for many of them meant half the salary for the next 10-20 years. Though the prices of the real estate have dropped by 30%-40%, our conclusion is that the business on the Romanian real estate market will be blocked this year in correlation with the global crisis.