Romania's Northeast region boasted the best dynamics on the housing segment in the first half of this year after Bucharest, with a 42% increase against the same period last year, and outpaced wealthier regions in the West of Romania.
At present, Ia[i is carrying out real estate projects worth 400m euros. The most important project is Palas, which is being developed in the wake of initial investments worth 170m euros, in a public-private partnership with the municipality.
"Real estate investments in Ia[i have witnessed unprecedented dynamics in recent years. Ia[i has become an important focal point for private investors - a trend that is irreversible," stated Gheorghe Nichita, mayor of Ia[i.
In H1, 2007, around 2,600 homes were completed in the Northeast region of Romania, which accounts for 20% of the national volume, according to a survey conducted by BCR. In comparison, Bucharest's housing market accounts for 40% of housing units built in Romania within the first 6 months.
Investors and private individuals in the region rely less on real estate loans, and register a level 5% lower than the national average, namely 14%.
"BCR's policy is to be the driver of banking financing in the real estate area. Our campaign to grant real estate and mortgage loans is in full swing, and covers both developers and final consumers," stated Dorin Cojocaru, the executive manager of BCR's retail lending department, who spoke at the event: "The Centre of Real Estate Financing in Your City," organised by BCR and the Romanian Association of Real Estate Agencies (ARAI) in Ia[i, in partnership with ZF.
BCR has launched Centrum Imobiliar Retail in Ia[i, for the Northeast region of the country, which specialises in retail lending and the management of partnership relationships between developers, real estate agencies and final customers. The bank has established a network of 22 centres in the country's major cities, and sealed a partnership with ARAI to provide financing solutions that are tailored to market opportunities.
Around half of overall investments go to by real estate projects, particularly retail segments and mixed projects, which include housing complexes and office buildings.
"The total value of major private real estate investments in Ia[i currently stands at 800m euros, which includes projects finalised in recent years, and projects under development," explained Nichita.
According to Nichita, Ia[i municipality is about to complete the city's cadastral survey, and will also develop a new General Urban Plan, which will be completed within two years.
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