Confidence in the Romanian Property Sector

In January 2006 a respected UK based property investment publication suggested that should Romania achieve EU entry it could return investors in excess of 400% gains in 10 years.  Then, just when the announcement came in September that Romania had been given the green light for EU entry an anti-corruption website named Romania the most corrupt EU entrant and subsequently we at Amberlamb have spent much of 2006 witnessing sharp divisions in investor sentiment in relation to Romanian investment property and whether or not it represents a viable and good short, medium or long term bet.

While faith and confidence in Romanian real estate as an investment commodity are most certainly not a given among individual investors - and where they exist they are easily shaken - it’s definitely fair to say that there’s a great deal of confidence in the Romanian property sector from leading corporate investors and international businesses suggesting that corruption is not a restrictive issue for them and that the long term prospects for substantial growth and significant profits more than make up for any negatives that might exist making the path towards property profits less than perfectly smooth.  Here’s some of their insight into Romanian property to help our readers make up their own minds about Romania from an informed position.

Big Name Players in the Romanian Property Market

For the past eight months analysts at the Central European office for General Electric Real Estate have been conducting something of a clandestine but comprehensive study of the property market in Romania. 

It was in the company’s best interests to understand the market and its potential ahead of the September 2006 decision about Romania’s future as an EU member to allow them to make swift decisions depending on the outcome of the decision…

The company’s extensive research coupled with the positive news for Romania that it will join the EU in 2007 means that today General Electric are poised on the brink of committing up to EUR 100 million into retail, residential and industrial property in Romania by the end of the year because so confident are they that “real estate projects in the major cities of Romania have a vast amount of potential.”

General Electric are now moving quickly because the pace of property price inflation has stepped up a gear since September and they don’t want to miss this current wave of growth nor lose out on the most lucrative deals to other big name players because the General Electric commitment does not stand alone…

Aside from as yet unsubstantiated claims from relatively trustworthy news sources that Britain’s Prince Charles is buying up swathes of Transylvania to extend his already impressive personal property portfolio, it’s an absolute fact that the Chinese are moving into Romanian retail property in a big way and forcing aside those who are too slow to act and it’s another fact that IKEA and Renault are just two examples of international names investing tens of millions into massive projects in the country which include the procurement or construction of commercial property.

Furthermore, Melbourne based APN/UKA European Retail Trust which already has substantial interests in supermarkets, warehouses and retail parks in Romania have about EUR 1 billion burning a hole in their pocket that they are interested in investing into property projects in nations including Romania in the next few months with more to follow over the next five years.

So, as you can see the big name corporate players already in the Romanian property market are confident that commercial and residential real estate are the places to be for long term growth - and one can take confidence in the fact that not only are their predictions based on extensive research and analysis but they are backed by risk averse decision makers who would be loath to commit to a corrupt nation experiencing a short term property market bubble surely?

Special Reports: Property News for Romania

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

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