Effects of the the debt discharge law: Mortgage lending has returned to levels registered in spring, says Wizmo.ro.

Newsroom 01/11/2016 | 16:04

The debt discharge law had immediate effects both on the banking and real estate markets, as well as on the related industries. However, the disequilibrium didn’t last too long, currently the situation being stable, according to an analysis of the new real estate platform Wizmo.ro, made with the support of the data of Kiwi Finance, the credit broker from Romania.

After several rough months on the real estate market as a result of the coming into force of the debt discharge law, in October the lending activity has returned to the levels registered in spring. Thus, in October the banks ’offers were almost entirely adjusted to the demand- down payments of 20-25 percent and interests in a moderate spread, shows the Kiwi Finance data.

This trend will be maintained both from the costs perspective, as well as from the prepayments perspective. Moreover, the prices of the apartments follow a sustainable increased trend, which will be maintained, according to the estimations of the real estate loans broker.

Read what are the plans of Wizmo in Romania

In this context, the real estate players became optimistic, as it’s the case of Wizmo.ro, the new platform of real estate offers, that targets equally the apartments owners, the real estate agencies, the real estate developers and the persons and companies looking for a property.

“We launched Wizmo.ro at the beginning of June and we can say that the moment matched the coming into force of the debt discharge law, an important twist of the local real estate market. We tested enough the field before taking this decision, reaching the conclusion that the economic environment from Romania offers appropriate conditions. We didn’t consider the new market situation as being a barrier. In October, the traffic registered by Wizmo.ro grew by 60 percent and the search time per visitor increased by 30 percent compared with September, “ said Maarten Deboo, CEO, Wizmo.ro.

The debt discharge draft bill was signed into law in May.

Georgiana Bendre

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