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Romania – Simmers as Potential Future Investment Hotspot
August 11, 2008Article by Ray Withers
Named as the top place to invest by Price Waterhouse Cooper and Channel 4’s A Place in the Sun programme last year, Romania is putting its name on the map as a prime investment destination. After becoming a member of the EU this January, its accession reflects the country’s social and financial fortification, which should increase as its membership matures. Romania’s GDP grew from 5.1% in 2002 to 7.7% in 2006, and is expected to be around 6% in 2007.
Thanks to Romania’s ownership-centred culture, the property market here is more suited to capital growth investments than rentals. As a result, capital appreciation is expected to be around 30% in the capital Bucharest in 2007, with rises of 15%-25% elsewhere; good news for past and present investors.
There is nothing to suggest that this appreciation will slow down just yet as demand continues to outstrip supply, especially in the more popular areas such as Bucharest. Several multinational companies such as Renault, Wrigleys, Delloite & Touche and Avon as well as several reputable IT firms such as IBM, Microsoft, Oracle and Sun Systems have already taken advantage of the country’s positive economic environment and motivated educated labour pool by relocating to the country’s main cities.
Romania is also currently the highest recipient of EU Structural Funds and by 2013 expects to receive €30bn in EU funding. As a result the country’s infrastructure is improving rapidly in line with its tourism and investment potential.