Romania Investment: Economy
Investment in Romania land and property involves analysing the country’s recent economic performance. Less than 20 years ago, Romania was an unknown tourist and investment destination, but a complete reform of its economy from 1989 has led Romania to impressive economic triumphs. With a successful combination of a fast-growing economy, rapidly-rising tourism figures and competitive property prices, Romania land and property investment currently offers one of the best returns globally, particularly when it comes to Bucharest real estate.
Cluj-Napoca, in the north west region of Romania began to attract international attention in 2007 when the Finnish mobile telephone company, Nokia, announced that it was to invest €200 million in a mobile telephone factory and research centre in the city.
Romania’s economy offers spectacular figures – GDP growth in 2007 was 6% with the same predicted for 2008. Q1 in 2008 saw particularly strong growth with an increase in GDP of 8.2%. Romania boasts a low unemployment rate (below the EU average). All these factors add to the potential for property investment in Romania. Romania has the additional advantage of its recent entry into the EU and is set to receive massive EU funding for infrastructure, providing yet another bonus for those planning to buy buy Romania property.
Romania Investment: Tourism Potential
Along with a thriving economy, Romania’s tourism is also flourishing. The World Travel and Tourism Council predicts that Romania’s tourism sector will become the world’s 6th fastest growing sector. Romania’s new Master Plan for tourism aims to attract 10 million visitors a year up to 2016. Romania received 7.7 million tourists in 2007. Romania offers an increasing choice of low-cost flights, facilitating tourist access to Romania’s many attractions and making Romania property investment a wise choice.
Romania Investment: Property Yields
The Romania real estate market offers more impressive figures. House prices are expected to increase between 15% and 25% during 2008. Romania new construction increased by 30% during 2007 with similar figures expected for 2008. According to the Romanian National Union of Notaries Public, Romania’s property market will be worth €23 billion in 2008. New Romania development as well as resale property offers exceptional buy-to-let potential and those considering Romania property investment can expect annual rental yields in the region of 5.5% in Cluj-Napoca. For more information, click here for the Romania Property Investment Guide.
