OTP Ingatlan Zrt, one of Hungary’s biggest house builders, is slashing its construction projects by more than two thirds due to the credit crisis, Chairman and CEO János Szabó was quoted as saying on Friday.
Szabó was quoted as telling daily Napi Gazdaság that the cost of financing construction has increased significantly recently, and passing those costs on would make homes too expensive for would-be buyers.
The company’s sales are expected to drop to HUF 8 billion ($39.03 million) this year from HUF 15 billion in 2007, and could fall further to between 4 billion and HUF 5 billion next year, he said.
OTP Ingatlan is a unit of OTP Bank. (Reuters)