AG Invest - Romania Property Market Profile

Red hot investment location undergoing huge property price boom

Why Romania ?

Romania has consistently proved to be a great investment location with fantastic potential for investors. It is one of the hottest European markets, and our favorite.

The property market is still very young and at the start of a prolonged and sustained period of growth. It is one of Europe 's leading property investment markets. A golden scenario of economic factors have come together, making Romania a very exciting prospect indeed; one we believe is imperative to invest in...

A full-scale housing boom is underway in Romania ; foreign investors are ploughing substantial sums of money into the property market and astounding property price rises are being seen.

Yet, it is a market in its infancy - emerging from the 'basement' phase, set to grow substantially over the next decade.

Since joining the European Union the younger generation of Romanians have been embracing Western Capitalism, growing affluent and demanding modern apartments and studio flats.

This demand cannot be met quickly enough. At current construction rates and current demand levels, there is a time lag of 26 years...this is what makes this market so exciting.

So...what's new in Romania ?

No-one understands these markets quite like we do. With this in mind, we have recently revisited and researched the markets in Romania and launched a new version of Romania Property Market Profile just for YOU.

AG Invest new Romania Property Market Profile, written by the Director of the company, is a comprehensive 50-page research and analysis report that aims to give you the most up-to-date information on Romania's property market and any changes that have taken place in the last six months since we first looked at the market.

In fact, lots has happened in the last six months...such as:

* There are mortgages available for foreigners in Romania
* There is intense demand for new property in the country
* The creation of a new middle class
* Lots of potential growth in second and third tier cities
* Housing trends have become more westernized
* There is more urgency for new build property
* A rapidly increasing population
* Massive Foreign Investment
* Bucharest is booming and prices are soaring

The latest version of the Property Market Profile, focuses more on the macroeconomics and future growth potential and includes more detail on the current hot spots such as the second and third tier cities.

The profile discusses how Bucharest , the capital has come on leaps and bounds in the last six months and prices are still booming…

Excerpt...

Bucharest is booming, property prices are soaring; the question is not whether to invest, not when to invest, but where to invest.

And the answer probably is ‘anywhere’ in Bucharest ; wherever you invest in the capital should bring you substantial return.

The contention is that prices of flats in Bucharest are as high as other European capitals and, because Romania is a low wage economy, they are beyond affordability.

However, there need not be that many wealthy people in Bucharest to absorb the small amount of new-builds released onto the market. But the other important thing to remember is the amount of equity locked up in homes makes flats affordable.

In this latest version of the Property Market Profile, you will discover which areas are offering the most potential for future investment.

Cities outside the capital are proving to be great options for investors - Cluj-Napoca for example, has shown 20-30% growth in the last six months which is set to continue.

The latest version of Romania Property Market Profile focuses more on the second and third tier cities in Romania , where the most growth is currently occurring.

Constanta, Brasov, Cluj-Napoca and Timisoara are examples of second tier cities and also the key growth cities in Romania .

They are all displaying similar growth patterns, they have large populations and all the key elements that impact on property growth.

Other factors these cities have in common are that they have large numbers of graduates and are recipients of large FDI.

Cluj-Napoca stands out for a further reason as well. Its current Mayor has close associations with central government; he was recently the second in command of the coalition and has strong contacts with people in power.

He gets things done; and that makes Cluj-Napoca an exciting go-get city.

Romania's third tier cities are smaller in population but a number of these have shown an exciting level of growth.

Arad is on the border and has had substantial FDI; the town also has a high density of graduates.

Sibiu is another interesting smaller town. One of its main attractions is its beauty, which should not be underestimated when selecting a location.

Sibiu is very nice. It has been compared to Prague for looks. What's more it has received significant FDI and has a large number of graduates.

Sibiu is a slightly different third tier city. It is small with a population of 154,821, it is not on the border but it is beautiful.

There is a large German contingent in Sibiu ; traditionally it was the German outpost Hermannstadt.

The quality and style of the architecture is testament to this history. Nowadays German influence in the city gives it a different feel; business runs smoothly and efficiently and the city is doing well as a result.

This year it was European City of Culture and is feeding off the marketing opportunity.

One city that doesn't often get mentioned is Iasi. this is Romania 's third largest city, but has received little by way of FDI.

It is located far away in the North East corner, in the direction of the former Soviet Union .

A bit of a fading dinosaur, it has a huge student population, the second largest in Romania ; because of this we feel it might be a rising star for the future...

The Romania Property Market Profile covers many more potential investment locations in Romania ...

The final section covered in the new Property Market Profile will give you a deeper insight into where Romania and the various locations should be considered in your investment portfolio.

# Does Romania seem an obvious choice for property investment?
# Is the macro-economy in good shape?
# Do we see strong growth potential?
# Will there be a consumer boom?