Ordinary citizens not to invest in real estate: economist Veaceslav Negruta

The ordinary Moldovans will not invest in real estate the next period, although the trend of dropping prices in this area is clear, Moldovan economists maintain. According to them, the phenomenon is explained by the world economic crisis which makes itself more conspicuous, Info-Prim Neo reports. According to economist Veaceslav Negruta, if till recently the Moldovans working abroad used to invest in apartments or houses in order to make profits by selling them later, now when Europe experiences the effects of the crisis, this category of buyers dwindles. “If you could get a profit of 25-30% from selling an apartment, now you may lose money,” he suggests. Thus, the immovable offer will rise, and this will lead to smaller prices. The building companies have been complaining already for a year, the expert says, adding that the price fall is a regional trend also noticed in Hungary, Romania and Russia. According to economists, although the realtors say the price keep steady, one can speak they drop. They explain: “the realtors are organized structures interested in sending the message about the price growth, but the increase can be but 1-2%, in order to create an environment and comfort they need.” If to convert these amounts into lei, the price drop is seen, the economists add. Speaking on the safety of investments in this area, the economist from the IDIS Viitorul think tank, Sergiu Gaibu, says “it's risky to make speculating deals.” The oil falls because of the same reason: the demand has dropped, because the consumers' purchasing power had dropped, he believes. But, Gaibu predicts the prices of all the products, not necessarily needed, will drop, as only the buyers needing real state to live in or to work in will remain on the immovable market.