Romania rental supply 'will increase' in 2009

Romania's residential and luxury property rental market is likely to increase to new highs in the coming year, it has been suggested.

Financiarul reports that real estate firm DTZ Echinox has cited a number of reasons for this prediction, including the fact that many people who already own an existing property in the country have purchased further housing for investment purposes.

The growth in the rental market has also been attributed to the fact that many investors who purchased property to renovate and sell on for a short-term profit have been "caught on the wrong foot" by market developments and now will not see a return on their investment if they choose to sell, forcing them to let the homes out instead.

Financiarul recently reported that the prices of some Romanian real estate property - including malls and office buildings - have fallen up to 35 per cent since January 2008.