A strong, growing economy, terrific location and increasing local affluence leading to strong demand for good property are just a few of the reasons why we love Romania.
Local Affluence
As foreign investment continues to flow into the country, Romanians are becoming increasingly affluent, with more people than ever before keen to become homeowners. As competition for quality residential housing grows, prices are rising sharply.
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 very 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.
But the important point is that the mortgage market in Romania is still extremely young, representing only around 1% of the country’s GDP at the end of 2003, a tiny amount by EU standards. Compare it, for instance, to the mortgage market in the UK, which represents around 49% of GDP. This indicates a massive potential for growth in the property market.