The price of apartments could fall by 16% if the government cancelled the VAT, and by 5% if the private sector and the entrepreneurs reduced the profit margin by a third, said on Tuesday, Dan Ioan Popp, President of Impact Developer and Contractor.
Similarly, if the government and the local authorities invested in utilities and public services in the proximity of residential districts, the price would fall by 12%, and if they offered free land for the construction of housing, prices would drop by 10%, said Popp, at the conference "Romania Construct and Real Estate Forum 2008".
"A major contributor to the actual final price borne by the buyer customer should be added: the bank, by the financing costs. The annual interest rate, cut from 15 to 10%, applied to a credit for 20 years, reduces the total cost of the apartment by about 30%", said Popp, who added that there are sub-variants of involving those responsible for price reductions.
