Bucharest
The capital holds the nickname Little Paris thanks to its wide,
tree-lined streets and imposing architecture. However, the
Communist era has left its mark in many areas, especially the
central district, much of which was razed and rebuilt by former
dictator Ceaucescu. The city is an interesting mix of French-style
Belle Epoque buildings, traditional Romanian architecture,
Communist-era Neo-classicism and faceless Soviet-style blocks.
However, new residential and commercial developments are bringing a
touch of more contemporary steel-and-glass construction.
Prices in the city have risen by 30 per cent in the past year
and show no signs of slowing down just yet. Far from being the
super-cheap destination it once was, prices in the city are
now on a par with other areas of Europe. Having said that,
Bucharest still remains one of the cheapest capital cities in which
to invest. Middle and upper-end buyers are now beginnign to reject
older-style blocks in favour of new, well-designed, contemporary
apartments with modern, quality fittings, parking and leisure
facilities. Either central or easily accessible suburbs are
favoured by owners working in the city.
By the end of 2006, old-style apartments were selling for an
average of €500-€1,200 per square metre depending on quality and
location, whilst new-build property was selling at
between €1,000 to €1,300 per square metre. High-end projects aimed
at the wealthier buyer now cost on average €1,500 to €2,300 per
square metre although some top locations are commanding prices of
more than €3,000 per square metre. Buying at this level though
makes rental yields a less rewarding investment option. Average
prices for apartments in the capital are around €75,000 with rental
yields in older buildings at around €1,000 to €1,500 per month. The
market in new-build rentals is too young to have definite return
figures as yet but many agents are predicting returns of 7-8 per
cent.
Northern Bucharest is heavily sought after and may be too
saturated with development for some investors. As a result, land is
scarce and expensive and so are properties. Those looking for
cheaper property may want to investigate South Bucharest and the
Olt Valley, which, while close to Bucharest, is underdeveloped and
under publicised but has stunning countryside landscapes,
attractive spa towns and lower prices. The suburbs and outskirts of
Bucharest also have the potential for substantial longer-term
returns as the city expands and properties in these areas become
more integrated.
Timisoara
Known as Little Venice, this is one of Romania's richest cities
situated on the western border with Serbia and surrounded by the
lovely countryside of the Banat region with its lakes, mountains
and forests. The city has attracted a lot of commercial investment
with several large companies including Procter & Gamble and
Nestlé. The property sector here is thriving with many residents
opting for new villas in the suburbs and surrounding countryside
rather than apartments. Prices have risen 25 to 30 per cent in the
past year and predictions say they will continue to rise at the
same rate for the next year or two. Rural homes can be bought from
around €36,000 with apartments in city locations from around
€60,000.
Arad
Hotly tipped as the next big investment location, this modern
city is a designated free trade zone (with only five percent
taxation) and as a result is pulling in lots of industry and
businesses. Situated on the proposed new Bucharest-Budapest route
it is well placed for trade links. Prices start at around €75,000,
though the market is undersupplied. New development is underway and
yields of around €1,500 per month make it a good proposition for
future rental and capital returns.
Transylvania
This central region is forever associated with the myth of Count
Dracula and pulls in substantial tourism as a result. It is also a
rural paradise of forests, fairytale castles and the Carpathian
Mountains. Cities worth considering for investment include
Cluj-Napoca in the north-west, a populous and thriving hub for many
corporations and with good transport connections including an
airport scheduled for expansion and new motorway connections with
Bucharest and the Black Sea. Architecturally very attractive and in
one of the country's most beautiful regions, prices have increased
by 20 per cent in recent years. A large student population may make
it a good buy-to-let option.
Brasov
Situated in the centre of southern Transylvania, Brasov is
another busy town offering beautiful architecture, good commercial
links and a large university. It is well known for being
particularly popular with tourists during the winter season because
of all the winter sports and activities it has to offer. Brasov is
also the largest of resorts in the mountain area. Property here
consists of new apartments in the slightly sprawling industrialised
areas and contemporary and older-style family homes. Average prices
are upwards of €70,000 with large farmhouses with land or new
villas priced from around €240,000.
Sibiu
Sibiu is a beautiful and historic town that was awarded 2007
European Capital of Culture resulting in much interest from the
media and tourism. Surveys have showed that Sibiu and its
surrounding areas are the most visited in Romania. The city has
several museums that exhibit a mass of historic artefacts and there
are also several historic buildings to be seen. Substantial
investment has gone into infrastructure and commercial investment.
Property here is in short supply and therefore prices are higher
than some areas with new apartments selling from around
€37,000.
Poiana Brasov, Predeal and Sinaia
These are Romania's main ski resorts and also offer investment
and second home opportunities. Poiana Brasov in particular has
developed well and attracts large numbers of skiers each winter.
The beautiful Alpine countryside is now home to clusters of luxury
hotels, private chalets and apartment developments. Not only do
Romania's mountain resorts have some of the best skiing in Europe,
they offer the potential for good rental during the summer too.
With attractions such as hiking, cycling and horse riding, unlike
the coast, there is the potential for year-round rental. Prices on
average in the mountains range from around €36,000 for new-build
apartments and from €75,000 for log cabins. Rentals are currently
pitched at around €300-€950 per week depending on the season and
quality of the property.
Black Sea coast
The country's seaside resorts are not as well known or developed
as those of neighbouring Bulgaria and the short summer rental
season of only four months each year has curtailed investment.
Nevertheless, the towns of Constanta, Costinesti and Mamaia are
busy with eastern European tourists all summer and prices have been
rising by around 15 per cent recently, with property costing from
around €45,000 for apartments, and villas (which may be in need of
updating) from €110,000.
Top