REAL ESTATE CRISIS. CAUSES, EFFECTS, MEASURES TO IMPROVE. THE ROMANIAN CASE

• Main Author: CHEPTEA MADALINA
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2015-12-01
• Series: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Subjects: real estate; bank flexibility; property; social impact.
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2015-Special%20ECOTREND/86_Cheptea%202.pdf

Starting 2008 Romania faced one of the deepest financial, economical, socio-political crises. It all started with the decline of the real estate market. Very accessible bank loans, real estate evaluators that in their majority used to double or triple the value of properties, the insatiable wish of each and every Romanian to own one or more properties without considering the long term consequences, banks’ risk departments that completely ignored risk, all those were the perfect recipe for a disaster. This research paper is an approach in creating the big picture of the Romanian real estate market and the attached domains, the role it played in the national economic crises, and also the social impact banks’ behaviour had on the population layers.