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Area:
238,391 sq. km. (92,043 sq miles)Population:
21,700,000 (89% Romanians)Joined the EU:
1st of January 2007Government:
RepublicMajor religion:
ChristianityMonetary unit:
RON (Euro is due 2014)Taxation:
19% VAT and 16% Corporation Tax
- Economic boom: a major 9.3% economic growth in Q2 of 2008 (National Statistics Institute);
- Increasing purchasing power of the population (average wage increased 25.8% comparing July 08 with July 07)
- Low Credit Risk (ratio Mortgage/GDP: 2.6% in Romania vs. 83% in UK)
- Biggest country in the Balkans (21 Million people) with high unsatisfied local demand for properties:
- Estimate 1million homes shortage country wide;
- Estimate 300k homes shortage Bucharest only;
- Recently joined the EU with a staggering 31 billion EU investment in the country infrastructure 2007-2013;
- Major multinationals establish their eastern European headquarters in Romania (IKEA, RENAULT, Citigroup, PWC, KPMG etc);
- Lowest taxation in Europe (16%);
- Easy to reach by plane in less than 3h flight. Also low cost carriers fly from major UK airports: Easyjet, Blue Air, Wizz Air.
Bucharest (also known as “Little Paris”)
Capital City: 2.4 Mil Inhabitants (6th Largest EU city)
Reasons to invest
- High unsatisfied demand for residential properties (estimated 300,000 units in demand and only 6,746 units delivered in 2007).
- Local migration to Bucharest for the better-paid jobs (adds more pressure to the residential/rental demand).
- Major Multinationals (Microsoft, IKEA,etc) establish headquarters in Bucharest (creates a demand for business rental).
- In some area prices on off plan is cheaper than the old communist flats;
Brasov, Transylvania.
Medieval City: 283 thousand inhabitants
Reasons to invest
- One of the largest cities in Romania with a high unsatisfied demand for residential properties (important local demand and tourist rental potential);
- A picturesque medieval town strategically located from an economic point of view in the centre of Romania (business and tourist hub);
- Proximity to important tourist attractions: Romania’s main ski resorts (Poiana Brasov, Predeal, Sinaia), Dracula Castle and other attractions in Transylvania (adds demand for rental);
- New Brasov International airport due for completion early 2010 (€100million investment);
- Major investments in the infrastructure (Romania will receive €30billion EU funding between 2007-2012);
- 100 miles to Bucharest (capital city); New motorway in progress (due completion 2011);
- Unique city with extraordinary architectural features and natural surroundings
- Brasov is University centre with 20.000 students (adds rental potential);
Suceava, (former capital of Moldavia)
Medieval City: 105 thousand inhabitants
Reasons to invest
- HIGH LOCAL DEMAND of 10,000 residential units. In the last 19 years only 450 apartments have been built and only 980 are now under development;
- LOW PROPE RTY PRICES (more than half price compared with Cluj or Bucharest).Prices are expected to grow for 2 reasons:
- The Romanians who emigrated in the 1990’s (in excess of 2 million) are returning to their home towns due to poor performance of Spanish and Italian economies;
- Massive tourist potential with the development of the new airport (The Moldavian painted monasteries, unique in the world and UNESCO world heritage);
- ECONOMIC HUB; Suceava is a Commercial hub for the north region of the country with perspective development plans with Ukraine (Example:€ 570 million invested by the Austrians Company EGGER AND SCHWEIGHOFER in the wood processing industry) ;
- Major investments in the infrastructure ( Examples: € 28.5 million funded by EU to renovate the highways linking Suceava City to Cluj and Romania with the neighbouring country Ukraine);
- Improvement of the existing International airport- project funded by the American group ANYC Group Inc;
- Proximity to major ski resorts (Durau, Vatra Dornei, Borsa);
- Spa’s (natural resources) 65 miles southwest of Suceava- A fashionable spa resort during Hapsburg times, today Vatra Dornei is a year-round destination, featuring spa treatments as well as summer and winter activities.
- Proximity to world famous Cotnari Vineyards, the Romanian “Royal Wine”. Every year on September 14, wine connoisseurs celebrate the harvest here. `Grasa de Cotnari` was awarded several times the gold medals at International Exhibitions.
Black Sea Coast
Medieval City: 283 thousand inhabitants
Reasons to invest
- Very early stages of development and prices are still cheap;
- Existing local rental demand (Romanian has 23 million people and only 244km long coast);
- International airport to Constanta (Ryanair, Malev,Tarom);
- High Potential for Spa tourism (ex: Techirghiol famous therapeutic mud).
