Romania Property Guide: Eastern Europe Investment (annotated from Financedaily.co.uk published on 29th February 2008)
A handy overseas property guide for anyone interested in buying property abroad in the emerging market of Romania. Plus, search for property in Romania.
Romania is a country in south-east Europe and is home to over 22 million people. Bordered by Hungary and Serbia to the west, Ukraine and the Republic of Moldova to the north-east, and Bulgaria to the south, the country has recently begun to attract people looking for second and holiday homes.
At the moment there are 3 major areas of interest for investment in Romania. They are: the Black Sea coast, the mountain region, especially city of Brasov and its surroundings and the Capital Bucharest. These are the most buoyant parts able to give returns of more than 30% annually on your capital investment.
Romdeals Property through its local knowledge and connections established at all levels in industry and the local Governments is capitalising on this interest by running major property investments projects on all these different locations. To date we are running successfully our second apartment project in Costinesti, on the Black Sea coast. We have also just announced a new apartment project in Brasov. We also have exceptional land offers in Bucharest with a series of residential projects to be launched in 2008.
To search for overseas property in Romania
Since the fall of the Iron Certain in 1989, Romania has undergone a number of political and economic reforms which meant that it was able to join the European Union in 2007.
As a result of its geographic location and distinct historical evolution, Romania has a unique culture which has long attracted tourists. Lonely Planet explained: "Romania has the majestic castles, medieval towns, great hiking and wildlife, and cheap skiing of much of the 'undiscovered' former Eastern Bloc. You'll be floored at how different it is, but you'll almost certainly see signs that it's chasing the dreams of the rest of the west.
"Horse-drawn carts jostle for space against fast cars whose drivers are talking money on mobile phones; farm workers watch The Apprentice on satellite in their medieval farmhouses.
"No longer the weird kid of Europe it was under Ceausescu's despotic tutelage, Romania is now making new friends and passed the entrance exams for NATO and the European Union with flying colours."
Pros and Cons to Buying Property in Romania
As a result, the country has emerged as hotspot for investors. In fact, Amberland reported recently that the country had benefited from slowdowns in the property markets in Spain and other European countries.
In particular, the site tipped the resorts south of the coastal town of Constanta as good places for people looking for holiday homes. Romdeals Property Group currently sell in the resort of Costinesti, which is the most popular yet inexpensive beach resort in Romania. It explained that new Ryanair flights would link the city with Europe and that house price growth was still possible for many years to come.
"Unlike in Bulgaria where if you want to make any profit you'll stay well away from the Black Sea coast, Romania's Black Sea coast is fairly undiscovered and actually ripe for investment," the site added. "It is as stunning as Bulgaria's was before the mass of high-rise, low quality apartment blocks popped up all along it."
According to the site, a one-bedroom apartment in the region will cost around €48,000. In contrast, large "beach-side villas with five bedrooms, four bathrooms and extensive gardens" only cost around €400,000.
The Global Property Guide also suggested that buying in Romania could be a good idea. It pointed out that prices in the country have risen by between eight and ten per cent annually for the last couple of years, but that it is still possible to find good value homes.
According to the site, the average price of property in Romania is, at €2,350 per square metre, still cheaper than the Czech Republic or Estonia. It noted that many people opt to purchase in Bucharest, where homes typically cost around €1,667 to €2,300 per square metre.
However, the site did point out: "Of course, the foreigners are less interested in Bucharest than in Romania's beautiful countryside, where prices may be very significantly lower." According to the guide, rural homes with extensive grounds can be purchased for as little as €220,000 and can cost up to €700,000.
What you need to know when buying property in Romania
Prior to joining the EU, foreign nationals were not permitted to own land in Romania. However, since its ascension, the rules have been simplified.
Despite this, it is still advisable for those buying homes to consult with a local lawyer prior to purchase. romdeals Property Group offers a full legal package for all investors buying though its offers, including formation of a LTD company, the simplest vehicle of owning property in Romania. The service provided is backed by the highest reputable English lawyers based in Bucharest.
RomDeals Group also offers mortgage solutions for non-rezident investors buying property for sale in Romania, as well as accounting solutions, legal tax-avoidance, relocations, and other property advice consultations provided by our established property experts with more than 10 years experience on the International and local markets.Overview of the Romania property market between 2004-2007
A quick English dictionary for buying Romanian property