Investment: Buying an off plan property – a flat would be the easiest, more straightforward and sometimes a cheaper option.
Exit strategy 1: Keep the property when finished and rent out either for holiday lets or profesional local people. Rental prices and yields vary across Romania and it is reasonable to expect yields between 4 – 10% depending on the location, type, size and quality of the accommodation you are providing.
| Studio Flats in Bucharest - rental autumn 2007 | |
| Area Price | (€/month) |
| Titan | 325 |
| Mihai Bravu | 342 |
| Dristor | 356 |
| Iancului | 367 |
| Drumul Taberei | 400 |
| Calea Calarasi | 409 |
| Vitan Mall | 428 |
| Tineretului | 442 |
| Turda | 465 |
| Burebista | 492 |
| Unirii | 496 |
| Alba Iulia | 500 |
| Nerva Traian | 516 |
| Mircea Voda | 520 |
| Camera De Comert | 540 |
Exit strategy 2: Sell right before paying the last price installment at a profit.
Off plan apartments are a very popular choice with investors, mainly because of rock bottom prices which increase once the property is being finished, generating a considerable profit.
In Romania demand for good property vastly exceeds supply. This is the key reason for price growth in the market, which took off in 2003, recording rises of between 30% and 60%. Overall, modern houses and apartments of a good design and standard are still in short supply. This is fuelling a strong demand for new-build houses and apartments of modern design, with more attention to desirable surroundings and other more sophisticated elements.
There are good developments available in Romania, from reputable builders and we experienced some of them selling between 3 – 5 units a week, even before the actual building works have started.
Quality developers also tend to be flexible with foreign buyers and usually offer a discount when more units are reserved and / or purchased.