Last bit of news13 Jul 2011 10:20
Growing interest in purchase of undersized apartments in Central and Eastern Europe (CEE), which are accessible to an increasingly large proportion of the population, accounted for investors.
As reported by the company for property Engel East Europe develop a number of residential projects in the region, in the last 12 months has been "slow but safe positive change in the property markets in Eastern Europe".
The demand for smaller apartments creates a need for a different approach to the development of housing projects, which provides for the establishment of such types of units that can be built and sold for a shorter period.
Although this change leads to lower levels of income and profit, this is compensated for by the shorter period required by the project to the realization and the payment.
Given these circumstances, the company also started to adapt its product to this search and directed focus of a large part of their activities to these market trends. For this reason the company less financial resources are necessary to manage its operational activities, which gives it a greater opportunity to increase its production capacity in these conditions, the Executive Director of the company GAD Raveh in message to shareholders.
Crediting of building projects in the last year remained difficult, although in some cases, credit institutions are committed to provide financing again.
We see signs that the financial institutions shall be returned to their main business, the provision of funding. However, this becomes very cautiously, as creditors not granted money to companies, and the people who manage these companies ", specified by Engel.
"This prudent environment funding lead to large (budgetary) restrictions and savings in our activities which we we balance using our existing finance and loans, we comment on by the company.
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