The slowdown of the real estate market has led to the equity element of investments increasing compared with previous years, when financing was easily acquired and the criteria used by the banks when granting loans were quite flexible and fluid, Buftea added. “The real estate players are more reluctant and cautious even before taking decisions that were considered standard in the past. The values of the projects are definitely lower than in previous years,” he noted.
The firm, which has five lawyers working on real estate related projects, is currently involved in the sale and purchase of a portfolio of real estate developments. “It is a cross border transaction coordinated by our office, on which we are working closely with our colleagues from different jurisdictions. There are also other challenging transactions in the pipeline where the parties have begun preliminary non-binding negotiations,” the DLA Piper representative said.
In terms of customer approach, Buftea says clients are not as aggressive as they were during the golden days of the Romanian real estate market. “They are tending to keep a low profile rather than spending money on advertising which will not now add any value to their investments. However, we have noticed that the activities related to major real estate projects that are not blocked are being advertised as usual,” he concluded.