Romanian real estate developer Prime Kapital is putting residential projects not in development on hold after other developers announced similar decisions recently, Economica.net reported.

More expensive building materials, which eat into profit margins, are only one of the causes.

Subdued demand, suppressed by the high-interest rates and concerns about further economic development, is another one.

In recent years, Prime Kapital has bought the lands of several former factories in large cities in Romania and was planning to invest up to EUR 1bn to develop 11,000 apartments.

Recently, Antoanela Comsa, the president of the developer Gan Via, told Ziarul Financiar that her company is putting the project in Constanța on hold due to declining sales and low demand.

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iulian@romania-insider.com