Property Investment in Romania
Exciting Opportunities in Bucharest, Brasov, Sighisoara, Kluj-Napoca
Entry into the European Union and massive investment in infrastructure makes Romania's emerging marketplace an exciting investment opportunity for foreign investors.
Romania's entry into the European Union in January 2007 has brought new investment opportunities for savvy buyers. Romania is receiving a lot of attention from property speculators and with good reason. The impact on the property market through subsidies and direct foreign investment linked to EU membership is expected to be massive.
Property Prices Quadruple in 10 Years
According to a report by investment experts Obelisk International, house prices in Romania will most likely quadruple over the next 10 years. Property prices have, over the past four years, already risen by some 25%. Even so, by Western standards prices are still very inexpensive.
Investment Opportunities, Brasov, Kluj-Napoca and Constanta
Initially, the hotspot for property purchase was the capital city of Bucharest, but now new locations are attracting more and more overseas investment. The unspoilt countryside of Transylvania is the country's biggest tourist asset and this region is expected to attract foreign money with speculators avidly seeking investment opportunities.
Increased leisure time has led to the increased popularity of outdoor activities such as cycling, hiking, walking, horseback riding and skiing. This has resulted in a rapid development of tourist areas in Transylvania.
The medieval town of Brasov is a golden opportunity for investors. Brasov is Romania's most visited city. From 2008 Brasov will be served by a brand new international airport with a capacity of one million passengers per annum. Both EasyJet and Ryanair are planning to fly from the UK. In addition, a new motorway will link Brasov to the city of Bucharest. Investors can only benefit from this opening up of the countryside.
The ski resort of Poiana Brasov is only seven miles (12km) from Brasov. Poiana is one of Romania's best ski resorts, good for beginners and experts, with 9 miles (15km) of piste. However, the town is busy throughout the year because mountain biking and horseback riding are also extremely popular activities with visitors from all over Europe. These visitors need to stay somewhere, so this could be an excellent opportunity for investors.
Investment opportunities are also to be found away from the tourist areas. The cosmopolitan city of Cluj-Napoca is a university town with nearly 60,000 students. This is a city where both purchase and buy-to-let opportunities abound.
The coastal port of Constanta on the coast of the Black Sea is one of Europe's busiest ports, and oil refineries in the region make this one of the country's richest cities. Constanta is also a popular holiday destination in its own right with fine beaches and plenty of tourist attractions. With all these factors in its favour there are opportunities for investment arising both in Constanta and along the Black Sea Coast .
Buying a Property
At the present time, foreigners can buy only a small apartment. For anything larger one has to set up a Romanian company to purchase the land. A good explanation of Romanian property purchase law and taxes together with the associated legal costs can be found at Obelisk International's web site.
