The Romanian market is rapidly expanding
due to the huge interest that it has attracted from foreign
investors, both private and institutional.
With selected investment in Land Development Projects,
the opportunities exist for Investment returns upwards
of 30% per year.
Where potential development land is acquired prior to
full planning consents, the investment margins increase
proportional to the risks.
The richness and variety of its tourist
attractions, natural but also cultural and historical
ones, bring Romanian a leading position in Europe.
As the country prepares to join the European
Union in January 2007, reports indicate a sustained period
of political stability, economic growth and low inflation.
Inbound overseas investment is growing year on year and
the property market reports demand outstripping supply
in nearly every sector.
In our opinion, all these indicators
point to a good time to invest in Romania
EU grants of 30 billion Euros
Romania 's GDP over 2005-2007 will go up by €10
billion per year, and will stand in 2007 at €96.138
€36 Bn (est.)
€45 Bn (est.)
€59 Bn (est.)
Percentage of GDP
WHY INVEST IN
- Extremely low current cost of land and finished property;
- Huge potential for growth;
- A growing economy: 3 consecutive years of growth.
GDP in excess of 4% (2002: 4.9%,2003 = 4.4%, 2004 =
- Reducing inflation: single digit figure of 9% achieved
- Major infrastructure improvements: including many
new roads & highways;
- 2004 is the first year Romanian natural persons were
granting housing loans;
- Many state-owned companies being privatised, leading
to a fully functioning market economy;
- - Accession to NATO on 2nd April 2004;
- Accession to UE on 1st January 2007.
PROPERTY, HOT SPOTS & OPPORTUNITIES
- Sharp increase in prices due to commercial/industrial
demand in Northern Bucharest & other key locations;
- Property Prices – Year 2003 – 2004
recorded 40-45% increase;
- Hot Spots – Bucharest, Constanta, Brasov, Cluj,
Timisoara, Oradea, Ploiesti;
- Open Sky’s Policy (2007)
- Airlines will be able to compete for routes, boosting
tourism, bringing more visitors & inward investment
- Service sectors, tourism & leisure
- Building, construction, industrial parks & offices.
INVESTMENT HOTSPOTS IN
Key investment areas
in the Romanian market
- Bucharest (the capital)
- Main cities: Timisoara, Arad, Oradea and Cluj (Transylvania),
Brasov and Sibiu (at the border of Transylvania and
south part of the Country called Tara Romaneasca) and
Constanta (port at the Black Sea)
- Land: construction land or agricultural land. Currently
foreign citizens cannot buy land freely. Our advisers
in Romania will enable you to purchase land by setting
up a company. Immediately on EU accession, there will
be no limitations.
- Countryside spots with tourist potential or urban
INVESTMENT TIP - BRASOV
A Canadian company to build international
airport at Ghimbav (8.3 kms from Poiana Brasov). Investments
within a public–private partnership with the Romanian
authorities, Canadian-based Intelcan has unveiled plans
to build an international airport in Ghimbav, Brasov
County. The total investment for a 3 to 4 years period,
amounts approximately 100 million EUR
Land prices in Poiana Brasov before November
2005 were averaging €180 per sqm. Land price in
the area can be expected to double instantly following
the announcement above. Also it should be noted that
the municipal authorities of Brasov will partner with
a private company to build an ultramodern golf course
in the area. An 18 hole course will be constructed, so
that tourists to have access to an increased range of
leisure activities outside the winter sporting season.
The proposal was made by a private company that offered
the Brasov City Hall a partnership in a joint company
to administrate the golf course.
The project completes the initiative
of a private company which intends to build in the neighbourhood
several villas, a 4-star hotel and a recreation complex
with tennis courts and swimming pool facilities. New
Gondola Ski Transport ropeway has also been opened at
Poiana Brasov this Christmas.