By Anna Grybel-kloc

The global credit crunch has halted all growth in the Romanian property market - and in many cases has caused a significant price downturn.

Many big foreign investors, who previously were piling in order to make quick profits, are now forced to suspend their investments. This applies both to commercial properties like shopping centres or offices, and also to residential projects.

Banks have become not only much stricter in lending to developers, but also to individuals, including foreign investors.

Consequently, demand to buy residential property has dropped sharply. Not only are off-plan apartments not selling, but also some buyers, who had made reservations or even paid deposits, are having to pull out of deals as they can't finance the remaining balance.