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Romania and Alps set for boom

Romania and Alps set for boom

Thursday, 17 January 2008 12:00 AM

New European Union entrant Romania and the southern Alps are set to become the next two overseas property investment hotspots.

That is according to research from the Homebuyer and Property Investor Show, which predicts both regions will see highly competitive growth during 2008.

In Romania average property prices have begun to increase dramatically following its accession to the European Union in January 2007 - but still reflect its position as an emerging market.

At present a spacious two-bedroom apartment in a popular tourist resort can be obtained for £100,000 - some 40 per cent lower than some other eastern European destinations.

However, experts predict prices could increase by 15 to 25 per cent over the next twelve months - partially spurred by the arrival of low-cost flights from UK carriers.

"We have seen the huge impact the presence of low-cost airlines has had on other eastern European countries, and Romania is set to follow this trend," said Ben Mason of overseas property agent Someplace Else.

"The country is one of the most beautiful in eastern Europe and offers a wealth of history and culture as well as a diverse landscape, from medieval towns, such as Transylvania, to Black Sea resorts, the Carpathian mountains and the magnificent architecture of Bucharest."

The predictions follow an announcement from Ryanair that it will launch flights to Arad, in the west of Romania, and the ancient city of Constanta in the near future.

The southern Alps are also expected to benefit from the expansion of low cost airlines across Europe - with Easyjet launching a new route to Grenoble late last year.

For example Les Arcs and La Plagne are now attracting renewed investment interest, according to the Homebuyer and Property Investor Show, with prices in the region still significantly lower than some developed areas, including Meribel.

Property in the upcoming resorts still costs around ?5,000 (£3,700) per square metre, compared to up to ?40,000 (£29,700) in the more established resorts.

"The French Alps have always been popular with buyers and those on a budget are returning to the area attracted by the small, high-up resorts which are easily accessed from the UK," concluded Nick Dowlatshahi, managing director of Leapfrog Properties.