Real Estate & Investment News in Romania from Propertyshowrooms.com

Romania tipped as property investment hotspot

Wed, 9 May 2012 00:00:00 GMT

Investors are expected to turn their attention away from markets such as Ireland and Spain to focus instead on Romania and Bulgaria.

Speaking at the IPD/Property Investor Europe (PIE) Central and Eastern Europe (CEE) Conference, partner at Schoenherr Lawyers Denise Hamer explained many of the banks in Romania have large property portfolios they now need to sell off.

As a result, the value of real estate in Romania will fall and investors will be attracted to the opportunities in the country's market.

"It's going to be very dynamic and volatile, a very exciting investor atmosphere," Ms Hamer predicted.

Board member of S IMMO - an Austrian firm - Holger Schmidtmayr highlighted office properties in Romania's capital Bucharest as another area to watch over the coming months at the CEE-focused event.

There are also signs international companies have faith in the Romanian retail market, after last month's announcement a new shopping centre due to open in Ploisesti in November is already 70 per cent let.

The development has been financially backed by Carrefour Property and New Europe Property Investment and tenants confirmed at the complex include Carrefour, Lee Cooper, Zara and Office Shoes.

Could Romania become a property investment hotspot?

Thu, 8 Mar 2012 00:00:00 GMT

Romania appears to be the next up-and-coming destination for property investors in south-eastern Europe.

Writing for the MIPIM blog, industry commentator Ilias Papageorgiadis explained the nation is in a strong position to attract further investment in its real estate sector.

He highlighted Romania's economic strength, pointing out it experienced healthy gross domestic product (GDP) growth in 2011 and is set to reduce its deficit to zero by 2013.

Meanwhile, the country is attracting investment from global businesses and the national bank has already made a number of structural reforms, all of which may add to the appeal of Romanian property for investors.

Mr Papageorgiadis added there is a strong development pipeline for retail real estate, while funding for residential projects is expected to increase over the next few years.

The office market in Romania is also moving forward, with Jones Lang LaSalle revealing last month that the first major institutional deal for an office park outside Bucharest was agreed.

Three out of the five buildings planned for the City Business Centre in Timisoara have been completed, with tenants such as IBM, PricewaterhouseCoopers and Vodafone among the firms to lease space in the finished offices.

Could Bucharest Old Town become a property investment hotspot?

Mon, 7 Nov 2011 00:00:00 GMT

The Old Town district of Romania's capital Bucharest is in need of refurbishment, with foreign investors showing an increasing interest in properties in this area of Romania.

Speaking to Romania-Insider.com, chief executive officer of More Real Estate Ilias Papageorgaidis noted that approximately half of the buildings in this part of the city have yet to be renovated.

He explained that of the properties that have been refurbished, the majority were converted for leisure use, with a small percentage accounted for by retailers.

However, Mr Papageorgaidis is not overly optimistic about new investment flooding into the district any time soon.

"Right now, the interest of foreigners is multiplied, but I doubt they find many opportunities to invest," he told the publication, adding that this is largely down to the small number of owners who hold assets in Bucharest's Old Town.

This part of the city is also dotted with historical attractions that make it popular among tourists, including the remains of the Old Princely Court, the Old Court Church and the Old Court Museum, which displays archaeological finds from the fort that used to stand here.

Foreign property buyers should 'get the right advice'

Thu, 5 Aug 2010 00:00:00 GMT

People investing in property abroad should ensure they consult the right people and pick homes located in lucrative locations, it has been claimed.

According to Paul Collins, editor at the BuyAssociation, many people fall into the trap of picking property that is isolated, which can easily reduce return-on-investment.

He claimed that all property buyers should ensure their investment is within reach of adequate local facilities such as healthcare clinics, shops and leisure centres - local knowledge that is often available through firms specialising in foreign property sales.
Mr Collins added that another common problem facing those considering buying property abroad is the local legal system.

"Something we come up against time and time again is people having used the same lawyer as their developer or the seller of the house and run in to all sorts of problems that way," Mr Collins concluded.

Overseas property searches dropped between May and June of this year, but were still up of 2009 figures by 138 per cent, according to new research from Primelocation.com.

New Romanian airport confirmed

Wed, 13 May 2009 00:00:00 GMT

The Romanian parliament has given the green light to a new project to build an airport for the city of Brasov.

Romania's Chamber of Deputies voted for the new transport hub to serve the location, which is 166km from Bucharest, Balkantarvellers.com reports.

Being located in the heart of the country, Brasov offers manageable travelling distances to the Black Sea, the Carpathian mountains and southern Transylvania, the site noted, factors that may interest those thinking of buying property in the country, not least to rent to tourists.

One local attraction is Bran Castle, often mistaken for the home of Vlad the Impaler by Dracula fans.

Romania's National Real Estate Fair last week saw many bargains on offer as developers sought to increase discounts to attract buyers, standard.ro reported.

Prices were dropped by between 20 and 30 per cent, with other incentives such as free parking spaces and furniture among the extras being offered.

Romania real estate sales hit slump

Mon, 2 Mar 2009 00:00:00 GMT

Sales of real estate in Romania dropped by over 27 per cent last month, new figures have revealed.

Data from the public notaries' national union revealed that 17,302 transactions took place in January 2009 compared to 23,778 in the same month last year - a decrease of 27.23 per cent, Balkans Business News reports.

And the fall widened to 43.22 per cent when compared with data from January 2007, when 30,474 deals occurred.

Vice president of the union Ion Marin told the news source that previous easy access to bank loans had created an imbalance between supply and demand in the country.

He added that the credit crunch has made people think twice about making a purchase, noting that job insecurity means sales may not necessarily pick up even if banks relax their lending criteria.

Romanian newspaper the Standard recently claimed that values of land in the country may fall by up to 90 per cent during the course of 2009, while the cost of property may decrease to half of the highs seen in 2007.

Romanian land values 'will drop 90 per cent'

Sat, 21 Feb 2009 00:00:00 GMT

The value of land in Romania could drop by up to 90 per cent during 2009, it has been claimed.

According to Property Secrets, a report in Romanian newspaper the Standard has suggested that the value of housing units will also be halved from their 2007 levels due to the lack of foreign investment.

The statement comes from the valuation and consultancy firm Darian, with general manager Adrian Crivii stating that there is no overseas investment scheduled to take place in the country during 2009.

He noted that the only interest may come from those who want to take advantage of cheap properties, something which investors looking to buy property abroad may wish to consider.

Mr Crivii added that purchases can still be made despite the economic climate, telling the news source: "The sign that the market is rebounding will come from the country in which the crisis started."

Earlier this month, BNP Paribas told media fax that there is an opportunity for Romanian property developers to build cheaper housing, noting that they must adapt to a changing market.

Romania developers 'should build low-cost property'

Tue, 10 Feb 2009 00:00:00 GMT

It is currently a good time for property developers in Romania to begin constructing cheaper housing, one real estate group has argued.

Henri Faure, deputy executive director of BNP Paribas, told Mediafax that real estate prices in the country are currently too high for investors and there is an opportunity for construction firms to develop low-cost homes worth up to 100,000 EUR (87,000 GBP), Romanian newspaper Curierul National reports.

Should such properties be built, investors looking to make a purchase in the country may find themselves with greater choice.

"The developers must adapt to market needs, to study better its future development. The development of such housing could be a solution to unblock the market," Mr Faure told the news source, adding that if finance becomes more readily available then the property market in the country may open up in the second half of the year.

Skyscanner recently described Romania as an ideal holiday destination, noting that it remains cheaper than other countries despite the falling value of the pound.

Romania 'remains good value'

Thu, 5 Feb 2009 00:00:00 GMT

Romania is one eastern European holiday destination that may see an influx of visitors due to the current strength of the euro, it has been suggested.

According to Skyscanner, the country is among a group of locations that remain good value despite the falling value of sterling in the eurozone.

The website explained that Romania is still "relatively cheap" when compared with other destinations, a statement that property investors who have been considering a purchase in the country may welcome.

Head of marketing at Skyscanner Rob Innes noted that while the pound has been "severely hammered" by the euro, affordable destinations are still available for those that look hard enough, adding: "Don't rule out the eurozone quite yet."

According to Romanian newspaper Gandul, property prices in the country are set to drop by as much as 60 per cent, with real estate firm DTZ Echinoz expecting falls of up to 30 per cent in the luxury sector.

Romania property prices 'set to fall'

Thu, 22 Jan 2009 00:00:00 GMT

Prices of Romania property are expected to fall by up to 60 per cent during 2009, it has been predicted.

According to Romanian newspaper Gandul, the coming months are likely to bring similar market conditions to those seen in 2008, when prices in and surrounding the capital Bucharest dropped by between 40 and 50 per cent, Balkan Travellers reports.

Ionut Ciocan, senior consultant at real estate firm DTZ Echinoz, told the news source that reductions of between 30 and 60 per cent are expected across the sector, with the values of more upmarket properties expected to decrease by between ten and 30 per cent.

"The sellers are on the market but more and more of them are squeezed by loans, while buyers don't tend to offer as much money as before," he was quoted as saying.

Earlier this month the BBC noted that Romania is one country that may become popular among British tourists looking for alternative holiday destinations during the credit crunch.

Romanian real estate market in freefall - still going?

Fri, 16 Jan 2009 00:00:00 GMT

After a round of optimistic predictions, including my own, regarding the state of its real estate market, it looks like the price of flats and houses is going down across Romania, following the international trend. Under the pressure of the media, putting up big signs for a catastrophe, buyers started to back up big...

Romanian tourism industry expected to maintain growth

Tue, 30 Dec 2008 00:00:00 GMT

Tourism experts in Romania expect the country to continue its development into an international travel destination in 2009.

Traian Badulescu, a consultant at Romania's tourism association ANAT, said that the country's tourism sector will "continue its upward path" next year, despite the global economic slowdown.

Property owners in Romania are likely to be encouraged by Mr Badulescu's comments, which included a prediction that visitor levels will increase by 10% over the next 12 months, Romanian website Wall-Street reports.

He said: "The tourism industry in Romania is undergoing an uptrend and it is not yet a mature market.

"This is why in 2009, the market will continue its upward path, even if the pace will be slower than in earlier years."

Romania's economy saw year-on-year growth of 9.1% in the third quarter of 2008, according to recent government statistics.

Visit our off-plan property Romania page.

Romanian Property Prices have fallen 30 percent this year

Fri, 12 Dec 2008 00:00:00 GMT

The value of real estate in Romania - malls, office buildings, houses and land – has declined by an average 30-35 percent since January, after a sound 15 percent annual increase since 2004, according to Colliers International consulting company Managing Partner, Bogdan Georgescu...

Romania ski resorts still undiscovered

Fri, 12 Dec 2008 00:00:00 GMT

A travel expert has lamented the fact that Romania's ski resorts do not receive more attention from winter holidaymakers.

Speaking to the Independent, Stevan Popovic said that Romanian resorts such as Poiana Brasov offer spectacular views and reasonable prices, with a high standard of facilities and tuition, but remain relatively unknown among many skiing aficionados.

Senior product manager for central Europe with tour operator Inghams, Mr Popovic described Poiana Brasov as "an ideal learn-to-ski destination", as Romanian instructors are often more qualified than their counterparts in other European ski resorts.

"I don't understand why more people don't go there," he said.

"Poiana Brasov is a purpose-built resort set in a beautiful bowl … And the standard of skiing tuition is extremely high."

According to recent figures from Romania, the country's economy achieved year-on-year growth of 9.1% for the third quarter of 2008.

Visit our off-plan property Romania page.

Romanian mountain range could attract more visitors

Wed, 12 Nov 2008 00:00:00 GMT

Travel experts believe the Carpathian Mountains in Romania have the potential to become one of Europe's major tourist attractions.

According to the Guardian's travel blog, the mountain range could "become the new Alps" in a few years' time, with Romania more accessible to UK travellers due to the increased availability of low-cost flight connections.

Described as one of the most "naturally interesting" regions in Europe, the Carpathians are renowned for their stunning views and diverse wildlife, with large carnivores such as bears, lynx and wolves living among the peaks.

Schemes to raise awareness of the mountains as a tourist destination without endangering its ecology are now underway, with the newly-ratified Carpathian Convention establishing international guidelines for development in the area.

In addition, a forthcoming report from the Danube and Carpathian Programme will offer businesses advice on setting up sustainable practices in the region.

The arc of the Carpathians covers an area of approximately 1,500 kilometres and passes through Czech Republic, Slovakia, Poland and Ukraine as well as Romania.

Visit our off-plan property Romania page.

Romania tipped to see strong growth

Fri, 12 Sep 2008 00:00:00 GMT

Romania's government has confirmed that its economy is likely to see growth of up to 8% this year.

The positive estimate was given by finance minister Varujan Vosganian, who added that officials are already working on revising their GDP projections upwards.

Analysts in the property industry have welcomed the news, with Homes Overseas magazine for example saying this could be good news for those who have invested in Romania.

The publication said: "Strong economic growth could further boost the the country’s property market which has been going from strength to strength in recent years."

Homes Overseas added that house prices in Romania have gone up considerably in the last few years, partly as a result of its accession to the EU back in 2007.

Property investors were recently boosted by the news that Wizz Air is planning to expand in the country before the end of the year.

The low-cost airline confirmed that it would begin operating direct flights from Cluj to Paris Beauvais in December 2008.

Visit our off-plan property Romania page.

Wizz Air announces new flights from Romania

Fri, 5 Sep 2008 00:00:00 GMT

Low-cost airline Wizz Air has announced that it is to continue expanding across mainland Europe.

The carrier will begin operating direct flights between Cluj in Romania to Paris Beauvais, France in December 2008.

Wizz Air will offer passage between the two destinations three times a week - a move which further opens up Romania to consumers in western Europe.

This could enhance the appeal of the country among various groups, such as holidaymakers, business travellers and overseas property buyers.

Commenting on the new flights, the airline said: "Paris Beauvais is a well-established airport of Wizz Air, but it will be the first route of the company to France from Romania."

This comes after Wizz Air confirmed that it will open up a new base in Romania next year.

The carrier's new facility will be situated in Timisoara and will handle a number of new routes to places such as Rome, Milan, Venice and Dortmund, as well as London, Barcelona and Paris.

Visit our off-plan property Romania page.

Prices rising in Romania

Thu, 28 Aug 2008 00:00:00 GMT

Property prices in Romania are rising steadily at the moment, providing investors with an attractive location in which to consider purchasing, it has been claimed.

Damien Thiery, a local market expert, noted that the statistics from the previous two years show that in some areas, prices have doubled, reports NuWireInvestor.

It is likely to be of interest to those looking for overseas property that specialists believe that the market is likely to continue expanding in this way for the next five to ten years.

Mr Thiery commented: "Despite the continuous rise of the prices of real estate properties, the market in Romania offers still the most attractive investment opportunities among all other countries in the EU."

The 150-mile Black Sea coast may offer attractive possibilities to buyers, while those looking for an investment that may require a bit of work could look into the Transylvanian countryside for an acquisition.

Standard & Poor's has listed Romania as one of its up and coming frontier markets in which investment could yield a strong return.

Visit our off-plan property Romania page.

Buyers should determine investment strategy

Thu, 21 Aug 2008 00:00:00 GMT

Overseas property investors have been urged to make sure they have firm reasons for buying a residence abroad.

Currency specialist FC Exchange stated that not every country suits certain investment strategies, which means that buyers will be drawn to a variety of locations.

For example, Romania was flagged up as an ideal destination for people who want to benefit from a fast-growing property market.

By contrast, France was described as a country which would better suit long-term investors, as it has a much slower rate of growth.

Nick Fullerton, managing director of FC Exchange, commented: "If you match the strategy correctly you will see the returns.

"If you’re looking for a quick return for instance there’s no point looking in France."

He added that overseas property should "firmly establish" their reasons for buying at the very beginning of the process.

According to market research group Datamonitor, people in the UK and Ireland currently own more than 3.8 million overseas properties.

High prices for medium sized land plots in Pipera

Mon, 4 Aug 2008 00:00:00 GMT

According to Thompson Financial, the Hungarian Ablon Group recently purchased a 40000sqm plot of land in Pipera for a medium-large development project. Although the position and the size of the plot are not imposing, the price paid is rather significant: €18.5M. On the purchased land, Ablon plans to build a number of 1000 flats, as well...

Rental prices for studio flats in Bucharest – autumn 2007 statistics

Mon, 4 Aug 2008 00:00:00 GMT

Rental prices are always a reality check for real estate investments – are the owners still getting good returns on their investment? Looking at this autumn’s offer, it seems that the rental market is on the rise, likely to have been influenced also by the arrival of the students for the new academic year. Once...

Trident pinpoints south of Bucharest for affordable flats

Mon, 4 Aug 2008 00:00:00 GMT

Trident is the latest residential development currently taking shape in southern Bucharest, in the Berceni area. Trident is a medium-sized project, consisting of three ten-story high blocks, including 109 apartments. Most of the units are studio flats (82 out of 109 flats), which makes them very attractive from a financial perspective to potential buyers...

How to get a portion of Ozone at less than 15 miles from Bucharest

Mon, 4 Aug 2008 00:00:00 GMT

After getting their share of city craze, packaged with pollution, noise, overcrowding and mad traffic, the medium-upper class in Bucharest is looking for alternatives to move out from all the…errr…civilization. The first wave was Baneasa – from spacious plots, positioned next to the woods or greenery, Baneasa became an expensive, over-posh, overcrowded and overpriced area...

The Spring arrives in Western Bucharest in 2008

Mon, 4 Aug 2008 00:00:00 GMT

The Ghencea area is most well-known for one thing: it is the home of the Steaua Bucharest football club. Beyond that, Ghencea used to be one of the North-West exit points of Bucharest, mixing poorer, outskirts housing, unused land, and a few industrial large beasts producing mostly pollution and noise ready to overwhelm the Bucharest....

Romfelt Plaza adds to the skyline of East Bucharest

Mon, 4 Aug 2008 00:00:00 GMT

The Colentina/Doamna Ghica zone is recognized as a good area for large development projects – the constructors of Rose Garden and Planorama already exploited the potential of the area with their blocks of flats. No surprise therefore that, on the (still available) plots of empty land more projects are shaping up. The latest one of...

Predictions for Romanian house prices in 2008 – slight fluctuations, mostly stagnating

Mon, 4 Aug 2008 00:00:00 GMT

Back in January 2008, Erste Bank published a report to comment on the evolution of house prices for 2008 in Romania. Although relatively unknown on the international scene, the bank is one of the big players on the Romanian market due to its acquisition, back in 2005, of the Romanian Commercial Bank...

Why is the Romanian Property Market Expanding?

Tue, 1 Jul 2008 00:00:00 GMT

The rest of the world is worried about the lack of credit available from mortgage lenders, the high levels of debt that many consumers and businesses have found themselves in, the gloomy economic prospects in the likes of the US and the UK and the fact that housing markets everywhere are starting to feel the pinch of all this negative financial energy…so why is the Romanian property market expanding? Seriously – why?

Still Not Convinced About Investment Property in Romania

Tue, 1 Jul 2008 00:00:00 GMT

We’re having sleepless nights here at Amberlamb – not a wink of sleep is being found as we toss and turn and ponder the property market in Romania. Now, the situation has arisen many time before when we can see the appeal in a market when all around are ignoring us – but never before have we had such a negative perception of a market and been so seemingly wrong. The trouble is we’re still not convinced about investment property in Romania – despite some online sources misquoting us and claiming we’re hot on the market, you know who you are guys, shame on you! But we’re apparently the only ones with less than a fair opinion of the potential to be had in Romania.