The villa and flat market has gone down to a half in 2008. Old houses are now 10% cheaper. Only the small flats in the outskirts of southern and western Bucharest sell. The demand is still considerable, mostly with people wishing to buy a second or third holiday house. During the recent International Real Estate Fair in Bucharest contracts of only 1,5 million Euro were signed. Transactions on commercial spaces and offices, a market of lots of millions, have now reached a standstill. ARAI president Ruxandra Cleciu comments: "As far as investors are concerned, they take this for a crisis of great projects." In 2008 no grand real estate transaction has been achieved so far and some negotiations that started last years were canceled. There are real estate agencies that dismembered their house departments in order to focus on lands. Moody's rating agency experts warn the great trade and real estate projects in Romania may reach a deadlock. Kenneth Orchard, Moody's analyst, comments: "In the last years there have been significant financial fluxes to Romania, but they may disminish. As liquidity is diminishing in Romania, the local banks will have to slow down the advance of credits." (D.S.)