Property in Romania
Often typecast as one of the poorest nations in Europe, EU accession is giving Romania a much-needed image makeover. Its Black Sea coast, budding ski resorts and lively capital are fighting to draw the attention of overseas speculators and turn Romania into an investment hotspot
Prices for Romania properties from £25,000
Key facts
- Population: 22,303,000
- Capital: Bucharest
- Approx. exchange rate: £1=4.8RON (Romanian New Leu)
- Visas: Required for work
- Time difference: +2 GMT
- Flight time from UK: 3 hours
- Major airports: Bucharest-Otopeni
- Dialling code: 00 40
Property in Romania
The Market: Tempting Transylvania
Leading up to its EU entry at the start of 2007, many investors targeted Romania after witnessing positive property returns in other ex-Iron Curtain EU nations such as neighbouring Bulgaria. Over-development was always a danger and has reportedly threatened to blight some areas, but stricter regulations are being imposed, while the archaic infrastructure is slowly but surely being improved through foreign investment. Romania expects to have attracted nearly 2 million foreign tourists in 2007, which will be a 30 per cent increase on 2006.
There is no concrete evidence yet to suggest that the country’s property purchasing laws are any less convoluted than before, although many new products are being launched, especially for foreigners. Price expansion and quick returns on investment look a distinct possibility considering the greater levels of sophistication with regards to both the range of property for sale and the means with which to buy it.
Most people are cash buyers targeting apartments in Bucharest – which start at around £50,000 – or ski and coastal resorts. As Bucharest grows, particularly in the south, new areas are expected to attract more foreign money. Away from the capital is Transylvania, Romania’s greatest tourist asset and famous for being the home of the legendary Count Dracula. Fascinating folklore aside, the area has year-round appeal: skiing in winter, hiking and outdoor pursuits in summer, medieval towns and interesting wildlife, including a resident wolf and bear population. The main towns here are the cultural highlights of Brasov and Sighisoara, the former being close to Romania’s largest ski resort, Poiana Brasov and the Prahova Valley in the Carpathian mountains. An airport is scheduled to open in Brasov in 2008 and a new motorway joining it with Bucharest is also planned, both good signs for the future.
Other mountain resorts include Predeal, Sinaia and Busteni. Villas in need of improvement can be bought for as little as £50,000; a rural cottage with poor facilities for just £15,000-£20,000. Looking to the Black Sea coast, the port of Constanta with its large beach is the site of new developments. Two other resorts offering bargain property are Mamaia and Costinesti, where prices for a brand new studio apartment in the latter start at £30,000 and deliver an 8-10 per cent return on five months’ let a year. As a whole the Black Sea coast is still largely untapped.
