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ABSTRACT
Real estate market in general and the residential market, in particular, are totally different from the regular markets where goods, services or assets are traded. Two main factors determine the specificity of the real estate market: characteristics of the properties and behavior of market participants. The real estate market distinguishes from other markets because of the asymmetric information, rigid prices, fluctuating liquidity and nonexistent transparency. Due to these factors, there are significant risks in the finance and banking system that is linked to the real estate market through mortgage securities, but also to the rest of the economy, by affecting both the investment phenomenon and labor mobility.
Romanian real estate market, unlike most of the real estate markets in the world, is subject to additional risks due to foreign currency trading, the shrinking population, the extremely large number of owner-occupied housing and low market rents. To all these, is added the lack of market transparency (lack of a formal real estate index), reduced trading speed, high costs and excessive bureaucracy in constructions.
Keywords
Competition, Real Estate Market, ANEVAR Assessors, Independent Assessors, Public Notaries, Notary Fee
I turned my attention to the competitive phenomenon in the real estate market because the real estate market from the distant Japan, at the end of the 20th Century (precisely in the 90th) and the U.S. real estate market at the beginning of 21st Century (in 2006, exactly) have lighted the flame of the financial and economic world crises. A closer look at the issue, according to official figures, in Romania we find that the residential real estate market is comprised of over 8 million houses which have about 21 million rooms with a living area of over 300 million square meters. By taking into account the figures, it requires a thorough analysis of the phenomenon from all points of view. In this context, an important role in the blurring of information asymmetries and increasing market transparency is held by the real estate related services: public notaries, real estate agencies, geodesist experts and e valuators. The vast majority of buildings have been completed until 1989, during which the urban growth rate was more pronounced, and demographic growth depended on a special legislation (abortion and emigration was forbidden).
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