Romanian Realty Transactions Drop More Than 27% In ‘09, Total Taxes Dn 52% - Notaries

In 2008, a total 484,767 real estate transactions were closed and the value of taxes on property deal revenues reached RON1.048 billion, according to notaries' data.

Early 2009, UNNPR representatives estimated a decrease of at least 30%-50% in the number of real estate transactions in 2009, relying on signals on the real estate market and the trend in January 2009, which reported a decrease of 50%.

Each month of 2009 registered fewer real estate transactions, compared to corresponding months in 2008, and January 2009 reported the lowest number of transactions, namely 22.182.

Real estate transactions were either on upward or downward trend throughout 2009 and peaked in October, which registered a total 33,086 transactions. In 2008, most transactions, namely a total 45,697, were closed in March.

The decrease in the number of transactions and in real estate prices triggered a 52% decrease in taxes on property deal revenues, to RON498.7 million de lei.

Taxes on property deal revenues range from 1% to 3%, depending on the value of property and the date of purchase.

Notaries' data indicate a 62% decrease on the year in 2009 in the number of mortgage loan-based realty transactions, down to 76,746.

In 2009, mortgage loan-based realty transactions accounted only for 20% of total deals.

In 2008, a total 484,765 real estate transactions were closed, down 7% from 521,636 transactions in 2007.

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