Romanian property drawing attention
Tuesday, 18 Mar 2008 11:06
Romanian capital, Bucharest
Property prices in Romania have seen substantial increases in recent months, with local buyers bolstering demand and pushing up prices.
According to Anglo-Romanian Development (ARD) – a Romanian property market specialist – prices for some new-build developments in the capital, Bucharest, have seen prices rise by 63.5 per cent over the course of a year.
The average property price in the eastern European nation increased by 40 per cent during 2007.
These increases have been driven by an increase in wages among the domestic population since accession to the European Union on January 1st 2007, according to ARD.
The Romanian finance minister recently announced GDP per capita in the country had increased from €2,600 (£2,000) in 2004 to €5,400 (£4,240) in 2007.
The latest figures from market analysts Mercer also forecast the trend will continue - with wages in Romania expected to rise by 11.5 per cent in 2008, the highest rise in Europe and fourth in the world.
The Romanian government also forecasts a staggering 75 per cent salary increase by 2013.
This trend has allowed a strong property market to develop, with local buyers fuelling demand – as opposed to second and holiday home owners.
"The Romanian economy continues to grow sustained by increasing inward investment and the demand for modern, quality housing continues to rise, providing excellent returns for those investing in the property market," explained ARD in a statement.
Romania also has a low unemployment figure, estimated at around 4.3 per cent during 2007, ensuring demand from a wide cross section of the market.
"I fully believe the real value and potential in Romania is at the top end of the market," said Alex Pintea, managing director at ARD.
"As wages are on the increase and Romania’s economy is continuing to develop, the property markets of Bucharest, Brasov, Cluj and other cities will begin to mirror more closely that of other European capitals with significant competition for the best property in the best locations."