Housing projects on the increase

2010-08-30

The market has seen a growing number of new housing projects, both by individual investors and by property developers, as shown by the data compiled by Open Finance (OF) and cited by Puls Biznesu.
In the opinion of OF specialists, until 30 July 2010, the number of new projects run by property developers rose by nearly 77% year on year. Although the number of building permits continues to fall, the falls are not as big as in the previous months.
Individual investors remain the biggest contributors in terms of home completions, being responsible for close to 57% of all housing projects, while projects executed by developers account for nearly 38.8% of all housing tasks. In the opinion of OF experts, increased activity of property developers is attributable to a number of factors. One of them is the fact that building permits issued three years ago expire and companies which want to use them have no other option but start the building process. Additionally, developers move on with the building on those plots which were bought when the market was at its peak, only to earn a minimum profit on the sale of dwellings built on this land.

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