No facilitation for developers

Developers have found themselves in a similar situation as mortgage takers. Banks loan requirements are forcing developers to have a 20 percent down payment in order to get a loan and security requirement in the form of mortgage worth 200 percent of the loan sum.

As a result, it is estimated that in 2009 the whole value of apartments that will not be built, due to banks limiting developers financing, will amount to zł.30 billion, writes Puls Biznesu.

"These conditions mean that before starting construction it is necessary to prove to the bank 20 percent of advance sale, which in present conditions is impossible, because the only projects that are being sold are those which realization is highly advanced," said Marek Poddany, president of Sedno developer company.

Such situations force developers to finance the projects from their own resources, which mean significant limitation of their activity. This will also affect the building materials sector and services connected to the building industry. (ZP)

Source: Puls Biznesu