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Research the main reasons why Romanian property is now a promising prospect in the international real estate market today.
Here you can keep informed of all the latest property and investment news and articles on Romania. This is provided by propertyshowrooms.com and carefully selected global sources.
Property investment in Romania is increasingly popular amongst overseas investors. Here you can read about some of the reasons why.
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EU membership has been the starting block that Romania’s property market needed. Indeed, increased foreign investment in the nation is now giving rise to an overwhelming demand for modern city properties to accommodate an influx of fresh economic activity, particularly in Bucharest.
As tourism numbers continue to soar, demand for holiday accommodation is also very high in the country’s popular mountain and beach resorts. World-class, internationally backed construction projects are duly underway in all sectors. Investors are well encouraged by the country’s economic promise and the obvious benefits that EU status provides.
The Romanian government presses onwards with infrastructure improvements in a bid to boost its economy further and, as it does so, foreign direct investment in Romania keeps on rising. The Romanian Agency for Foreign Investment (ARIS) confirms that FDI from January to April 2008 increased by over 100% compared with the same period in 2007. In fact, Romania is now a very attractive developing nation for foreign investors, with 55% of FDI centering on Bucharest. All types of investors are drawn by low property prices and living costs, and strong opportunity for rental yields and growth within this still emerging real estate market is the main attraction.
The April 2008 Ernst & Young SEE Attractiveness Survey reveals that Romania is regarded as the most attractive European country in which to invest, beating Turkey and Greece. Large multinational companies are currently drawn to Romania by its low prices and investor-friendly climate. As the country grows in terms of availability of professional work, higher wages and mortgages, many Romanians can now afford to buy their own homes for the first time.
If you are considering purchasing property in Romania, a look at our Guide to Property in Romania will help you gather information about the country and the property buying process. If your purchase is targeted purely as an investment, a visit to our Romania Property investment pages should provide some interesting reading.
The real estate market in Romania has been growing alongside a huge increase in commercial and tourism related activity. Buyers are choosing between state-of-the-art commercial and residential properties in major city centres, and quality apartments and chalets in the country’s favourite tourist destinations. The star of Romania’s city property market is Bucharest but interest is also spreading to the country’s second and third tier cities. Real estate in Brasov, Cluj-Napoca and Constanta is now attracting attention and significant increases in capital growth are being witnessed.
Not to be forgotten is the fact that Romania comes laden with historical charm, tales of Count Dracula and a unique culture. In addition to the country’s endless natural beauty, tourists come to enjoy the Old Town centre of Bucharest, now undergoing some 30 million EUR worth of renovations to museums, art galleries, a concert hall, jazz clubs and nightclubs. With the World Travel and Tourism Council (WTTC) forecasting that the country will become the sixth fastest growing tourism sector in the world, expanding some 7.9% per annum from 2008 to 2016, it is clear that Romania now offers much potential for tourism related construction projects.
Romania offers property buyers a wide arena in which to explore and identify real estate investment opportunities: it not only provides investors with a huge demand for city property, both commercial and residential, but tourism related accommodation is also in short supply in the country’s popular tourist locations, particularly its alpine ski resorts.
Many experts predict that, despite the Credit Crunch, Romania property prices in prime Bucharest locations will still rise. Investment property has seen high profits in the last 12 months, producing capital appreciation of as much as 40% in 2007. While this growth has of course leveled off drastically, property prices particularly in the capital, are still expected to continue rising to bring significant profits from property investment in high demand locations.
The increased presence of multinational companies in Bucharest in turn brings strong rental demand and ready sales and rental markets for properties in quality new developments. Increased foreign investment and resultant economic activity means that Bucharest could double its population (now approx. 2.5 million) within the next ten to fifteen years, according to the World Bank.
Covering over 500,000 m2, the largest technology and commercial zones in central/eastern Europe will be based in Bucharest, accommodating commercial giants such as BMW, Carrefour, Mobexpert and Ikea. The city boasts the largest entertainment complex in Romania, plus a huge shopping city with well-known brands like Massimo Dutti, Bershka, Zara and Oysho. Large multinational IT and software companies such as IBM, Microsoft, Oracle and Sun Microsystems have also all located their European headquarters in Bucharest.
No less than eight shopping malls will be built in Bucharest over the next few years in response to the overwhelming pace of construction and investment into the country – all positive signs for today’s investors.
A growing middle class is evident in Romania, particularly in and around the major cities. As the nation develops, its working population is becoming more qualified and wealthier by the year. With mortgages now available, home ownership is no longer a pipe dream for many Romanians and real estate buyers will therefore also find a local market to fuel their investments.
Investors are wide ranging, from Hungarian property developers, UK individual investors, holiday or permanent homebuyers, to large institutions such as Deutsche Bank who are buying up blocks of apartments and mixed-use developments right across Romania.
The majority of overseas purchasers of investment property in Romania focus in and around the capital city of Bucharest, including its historical Old Town, where many buildings have been renovated and converted into trendy, new apartments and commercial or office premises.
In addition to Bucharest, mountain areas such as Brasov and Poiana Brasov are popular amongst buyers, as are resorts bordering the 150-mile strip of Black Sea coast. Other areas of the country generally accepted as property investment locations are Ploiesti, Constanta, Cluj, Oradea, Brasov, and Timisoara. The Transylvanian countryside offers an alternative option for people who are looking to buy up bargain old rustic properties to renovate, safe in the firm belief that the tourism market will increase as planned, creating a need for holiday rentals in sought-after locations in Transylvania.
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