Our experience showed us the local agents are most of the times serious. There are however occasions when one bumps into irresponsible or even naive local agents. The deceitful category you speak of are also part of the landscape, nevertheless if you keep your eyes open and your ears tuned, you will not be deceived.
On the other hand, some of the foreign agents operating here are amazing! They have the nerve to show people crap and despite all evidence to still call it gold. Transylvania Investment had been contacted countless times either by the foreign developer's agents with sophisticated names and blown up advertising budgets as well as by so called "investors" who were looking into free marketing research and not admitted opinion polls.
As for the knowledge of the market, I don't think any of us is the possessor of the absolute truth or as some of us elegantly call it "insight".
The truth is Romanian economy is slowing down, oil and food crisis strike Romania as well, capitals return to the economies that generated them, therefore leave Romania and at the same time "developers" are systematically destroying whatever parcel of green space left in places like Bucharest in order to build some horrific giant constructions. I have never seen so much lack of imagination placed in buildings in my entire life and also I was shocked to see how many foreign investors adored these mammoth constructions and it made me wonder why the hell they criticize Ceausescu for being obsessed with big buildings.
For the developers and agents one of the reasons beside the lack of any aesthetic feeling is the need to make more money out of the plots of land that were already spicy.
To add more hay to the fire if any of the people here think it is normal to pay 5000 EUR/ 1 sq. m. of built space in Bucharest at this time, it means I should stop posting anything and mind my own business.
I think we all agree the market is slow. And we also know that for, I dare say, 99% of these humongous developments the "correction" will be so drastic that would bring some on the verge of heart failure. Perhaps things will start collapsing in August (some little birds gave us some clues in the matter) however we think it's for the best. If the market doesn't adjust now, things will stuck and crush much worse later.
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Originally Posted by Urban City Properties
I do agree with some of the points you have drawn up, I have been here in Romania for several years, I have been a agent for a while. I do know the market pretty well, After many years of experience in other markets, I can tell you, that if you are buying outside of Bucharest with lands sales these things can happen and still do happen. Ask any reputable lawyer, Yes I do know several unscrupulous overseas property agents. Most of them do have no clue of the market you are correct in that aspect. However, Besides them, I can tell you that many local agencies will do the same and still really have no clue of the market, Thank God many of them have left the business. And despite all the warnings and sad stories. I still do beleive the Romanian Market is still a good investment, As long as you buy in the right areas at the right prices. Not just in Bucharest. But many other areas are better buys at this time.
Now speaking of smaller developers, Yes the bargains may be had with them, However, I can tell you that some developements that had begun construction, Have now been abandoned, Right now the Market here is experiencing a stagnation, and a correction. Land prices have dropped by 20% within this first quarter as reported on local news papers with no end yet to bottoming out, The apartment prices are starting to decrease, I beleive the Bubble is bursting somewhat. Most developers are reporting at most 30% of their units sold with no one coming in to purchase right now. As there are some risks right now in the Romanian market, Due to overvalued pricing. And credit crunching by the banks. With higher lending rates. Though I do beleive the market will begin to pickup steam in mid to later 2009. After the correction. With most of the unworthy agents that are left , I beleive will be gone by then.
By the way, I am not a overseas property agent, I live and work here daily, I may not be Romanian, But I am not a scammer in any way shape or form. I have not made much money here using these tactics, But my reputation is not shattered.
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