Previously, Creativ was planning to start construction works at the project at the end of August last year, when it announced it would deliver two office buildings on 80,000 sqm in 2010. “We have not as yet finalized our financing plans as we consider that banks at the moment are still recovering from the shock of the past few months and are not taking a realistic view on the way forward,” the Creativ Global Property managing director went on.
The developer, controlled by Romanian businessman Marius Ivan and by Irish developer Tom Quinn, was planning to build some 200,000 sqm of offices, 900 residential units as well as retail area within PiperaCity, an investment of EUR 600 million, according to previous announcements.
“2008 started with such optimism and I did not believe that it could end on such a bad note. The worldwide banking crisis has shown what greed can do,” said Youens, looking back at last year's developments on real estate. But he sees the future optimistically: “Fortunately Romania is in a stronger position than some countries and has not entered into recession and I am very optimistic about the future for this country.”
He believes the housing market needs some initiatives and that banks need to get back to lending. “Unlike in the UK, the lending policies have been quite conservative and this leaves the housing market in a reasonably good position although I can see prices being very competitive from a purchaser's point of view for the next few months at least,” said Youens. “I cannot see that any major strategic decisions will be made by the major corporates for at least six months as everyone will be taking a cautious approach, as many expect more bad news for the banking sector,” he concluded.