The new bail-in model, recently debated in Europe, deepens the economic environment’s level of uncertainty. Gold no longer represents a viable investment option, the precious metal’s price having descended to the lowest level since July 2011. In this context, the investors’ interest is shifting towards fixed assets.
Although the financial earthquake, which originated in Cyprus, could undermine the investors’ confidence in the banking system, the Romanian market continues to present advantages over other countries in the region, according to Mihai Dumitrescu, Managing Partner Real Estate Division within consultancy company Crosspoint. “The recent events in Cyprus might determine a pronounced lack of confidence in the banking system and we might witness a shifting of capital towards more secure assets, including real estate,” said Mihai Dumitrescu. “In the first months of this year, we acknowledged an increase in the volume of targeted applications, which aim more towards investment opportunities. But the problem we continue to face is the large gap between supply and demand”, he added, referring in particular to Class A office buildings.
Mihai Dumitrescu foresees a significant improvement in the housing market this year, adding that caution continues to dictate a linear trend, and that foreclosure sales will mark a significant evolution in 2013. This segment will continue to evolve, according to the Crosspoint specialist, given that banks are forced to liquidate their non-performing portfolios.
Given the investors’ increased interest in fixed assets, the demand for art also follows an upward trend. A new category of professional services, based on financial consultancy, is beginning to take shape worldwide, according to the second Art & Finance 2013 Report, which points out that art represents a special category of assets, on which banks will focus more in the coming years. According to Deloitte, this new focus could determine credit institutions to launch new asset management services.
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