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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.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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