2bn euros for homes and land in H1

The value of real estate transactions sealed in the first six months of the year revolved around 2.5bn euros, with most of the deals concluded with the buyers’ own money, according to the National Union of Notaries and the NBR. The value of taxes cashed from real estate deals in H1 reached 51m euros (214m RON), so taking into account an average 2% tax per deal, the total value of sale-purchase contracts revolves around 2.5bn euros. In line with NBR data, during the same period mortgage volumes rose by only 60m euros (from 5.27bn euros to 5.33bn euros), and principal reimbursements during this period are put at around 130m euros, taking into account an average lending period of 20 years. In the first half of the year, several real estate developers also took on the role of funding providers as banking loans failed to unfreeze. In the second half, mortgage volumes are likely to soar, in the wake of the “First Home” programme, through which the state may guarantee loans worth one billion euros for house acquisitions.