Romania’s Property Market Hot for 2007

The level of interest in property in Romania as an investment commodity was already intense prior to the confirmation that the nation will join the EU in January next year – Knight Frank reported earlier this year that Romania was likely to become a property investment hotspot for 2007 for example – but now that the confirmation has come through, the levels of interest in this emerging property market have soared and Romania’s property market is definitely hot for 2007. 

Since 2004 the levels of foreign direct investment have been increasing dramatically in Romania; among the strongest commercial investors are the Chinese for example with the British, Irish and mainland Western Europeans mainly pouring their finances into the commercial, industrial and residential property markets. 

The dramatic increase in foreign direct investment prior to the EU entry announcement was largely attributed to the fact that Romania has established a flat tax rate of just 16% and significantly improved the general business environment in a bid to become more competitive, more transparent, less corrupt and less restrictive.

Their efforts have paid off substantially; according to the National Bank of Romania, in the first two months of 2006 alone FDI shot up to in excess of one thousand million euros which was a 94.2% increase on the same period in 2005.  Significant amounts of this investment came from the strengthening of capital of foreign companies already with a presence in Romania which further boosted confidence in and the attraction of the nation for foreign companies seeking a low tax, low overhead location in which to operate in emerging Europe.

Since the announcement that Romania will join the European Union next year, we at Amberlamb have seen an electrifying increase in the numbers of our readers directly seeking out news and investment information about Romania and the International Herald Tribune recently reported that Bucharest has seen a wave of Chinese businessmen and delegates arriving to set up a bridgehead ready for next year.

There are huge opportunities in all property markets – in the commercial market for example investment is being poured into the creation of new retail developments as well as into infrastructure projects from bridge construction to road building, there is demand for grade A office space in Bucharest and the light industrial demand is beginning to creep up too.  In the residential market there has been a shift in emphasis from low cost, off plan properties being bought up by speculators to the provision of attractive new accommodation for the middle classes who are growing in affluence.

Unlike Bulgaria - which is also joining the EU in January 2007 – and which has largely been explored and in some cases exploited by investors, Romania still offers long term appeal – but investors should proceed with caution as the nation still has a long way to go to make its property market liquid and the property buying and ownership processes transparent. 

For more information about specific investment potential and the property buying process in Romania check out the free online Amberlamb Property in Romania Guides.

Special Reports: Property News for Romania

Romania Property Investment Potential
Romania has an exciting emerging property market sector that’s attracting growing levels of overseas investor interest and generating impressive growth

Romania Property Buying Process
After Romania joins the EU in 2007 its property buying process will become simplified

Romania Property Investor’s Introductory Guide
The real estate market in Romania is in its infancy but offers property investors stunning property at incredibly affordable prices.