RAMS developer: Construction materials return to 2006 prices

Representatives of real estate developer RAMS Business Park, which has recently completed an office building in the Republica area in the East of Bucharest, says the price of construction materials has seen a decline by as much as 40% over the last few months, after a generalised increase of 80% in the last two years. “From October 2006 to July 2008, the period during which we developed office building RAMS Business Park, construction materials saw an 80% price increase. The price of iron, for instance, has started to fall towards the 2006 level, so real estate developers will be able to start making price cuts. Buyers should, however, differentiate between projects built at current prices as opposed to those valid in 2007 or at the beginning of 2008,” says Bogdan Nastase, one of the shareholders of RAMS Business Park. The second shareholder of the Romanian-based company is Sergiu Ioanovici, with the two businessmen investing 14.5 million euros in the office building that bears the company’s name. The building has a 12,000 square-metre lettable area and is currently 40% rented out, with its major tenant being luncheon voucher issuer Cheque Déjeuner.