Why we love Romania
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.
Strong, growing economy
Whether you knew it or not, a silent economic revolution is currently taking place in Romania, since the fall of the communist regime in 1989.
With 22 million people, Romania’s economy continues to flourish, wages are set to rise, which will put upward pressure on property prices. Unemployment in Romania has fallen to single digits, and the US, the world’s largest economy, has already given the country market economy status.
As part of the EU Romania has extremely good economic prospects. Historically, applicant countries’ property prices rise strongly up to and through accession.
Massive regeneration and infrastructural investment is predicted in this Eastern European country which, when underway, looks set to provide property investors with impressive returns. Channel 4’s A Place in the Sun is predicting 414% return in ten years.
Other commentators are predicting 20–30% per annum growth capital growth increases on property over the next 5 years with a leveling off to 10–15% for the five years after.
We prefer to err on the side of caution and estimate 10% to 15% over 10 years, in the knowledge anything gained above these figures is a bonus, not an expectation.
Romania is currently demonstrating strong economic performance. Economic growth peaked in 2006 when annual GDP grew by 7.7%. A GDP rate for 2007 was initially forecast at 4.8%, however this has increased to 6.2% due to stronger performance in the first quarter of 2007. A strong track record of GDP growth is a broad indicator of economic stability and also suggests heavy demand and investment in the property sector.