Depreciation of property value due to the global crisis has an advantage: now is the best time for reassessment of the companies' property

"In the last three months of 2008 and the beginning of this year the real estate market in Romania came in diving. In this period properties in Romania were impaired up of 30% and there is still potential to decrease. Regarding prices, compared the maximum, I expect a contraction by 50% in the residential property market and up to 90% in the land, "said Adrian Crivii, general director of Darian, a company specializing in the evaluation of real estate properties.

To give a simple example:
Company WWW Bucharest bought 3 years ago in December, a commercial space at ground floor in Pantelimon neighborhood in the amount of 100,000 Euros. He entered active in accounting from the time of exchange and paid each year 1.5% tax, that is (about 60 million ROL, meaning 5 million per month)
Last year in July the manager ordered to make the reassessment not to be surprised by the tax increased to 10%! if the period of 3 years from acquisition / last review is exceeded,according to Tax Law ,although the term expires at the end of 2008.
In July 2008 the crisis was not yet producing visible effects in the whole Romanian society, the real estate transactions were still "in the top" the credit was still running and developers were still optimistic, old apartments were still selling the next day after advertising at whatever price….
Valuation done and surprise! Space was estimated at 850,000 Euros! (correct in July 2008)
In December, the assessor has remade the valuation 350,000 Euros, the result justified by market crisis in full at the end of the year. In result, the company will pay 3.5 times more, but not almost 7 times as in penalty position.
Although the values of today are still higher than those from 3 years now, they fell far from the top of the baloon.