12th of July 2006
iPropertyGROUP News
Romania - Exciting Property Investment Opportunities
The Romanian property market is providing opportunities for capital growth that are unmatched throughout Europe in the following market segments.
• Residential & Industrial Land investments.
• Tourism developments, particularly in the Ski resorts of Poiana Brasov, Predeal & Sinaia.
• Industrial Property that has been recently developed for Transnational companies
The country has consistently enhanced its political stability since 2000, and strengthened its relationships with both European and US administrations.
In 2004, HVB Bank Austria reported that Romania recorded a GDP growth of 8.5% just behind Latvia (8.7%) at the top of the CEE league table.
Romania’s economy has recently been upgraded to investment grade by Fitch. The Romanian currency has been appreciating against US Dollar, Euro and Pound, providing additional growth potential for investors in Romanian property assets.

The explosive growth of the Economy:

Romania’s economy is combining steadily increasing levels of GDP and significantly higher levels of Foreign Direct Investment (FDI) than its near neighbours in 2004 – Romania €3.5bn. – Hungary €2.5bn. – Bulgaria €1.5bn. – Slovakia € 0.5bn. Inflation at 9.9% in 2004 has been steadily reduced since 2000.

Real Estate:

The residential market has seen the first signs of interest from professional developers looking for large scale developments that will have an impact on the medium and high end markets.
As residential prices are still low compared to the region, this sector has probably the biggest opportunity in terms of future growth and development.

Residential property

Prime residential property in Bucharest is very much dependent upon location.
In March 2005, quality refurbished apartments in the city centre are being retailed for €1,100 - €1,750 per square metre. 1 & 2 bedroom apartments in the central Unirii district fetching €100,000 – €170,000 respectively
House prices for new build range from €65,000 to > €250,000.

Office property

Land for Office Developments - Demand is still focused on the central-northern area, but due to the scarce supply, most developers have also considered the nearby areas such as Pipera and Baneasa.
Demand came from international office developers and even investment funds unable to find finished product and looking to create opportunities in Bucharest.
Prices are 50% higher than 2003 and have reached €1,200 – 1,500 sqm in good locations (Aviatorilor,Victoriei, Dorobanti). Prices for sites in Pipera reached €150–€170/sqm, registering approximately 300% growth compared with 2002’s level. Higher values are achieved if the site has already permits, other building endorsements or a triple A location.



Source: Factbook.net