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Investment Overview

Romania is one of the newest entrants to the EU – it joined alongside Bulgaria in January 2007 – and investment property in Romania has naturally been in the spotlight as one of the top investment opportunities for this year. Last year Romania was tipped by Channel 4 programme ‘A Place in the Sun’ as the top overseas property investment destination in terms of potential returns (based on data from PricewaterhouseCoopers): the study predicted that the price of investment property in Romania would quadruple between 2006 and 2016.

New era

In the time since its EU accession, Romania has already begun to see the effect of membership on its economy and its housing market. The Romanian people are entering into a new era with a higher average wage, a growing wealthy class of residents, and a newly accessible property market thanks to more flexible mortgages. According to the World Travel and Tourism Council (WTTC) Romania is a fast–growing nation in terms of tourism, and the WTTC ranked it seventh out of 176 countries for forecast growth. This augurs well for investment property in Romania, both in terms of rental returns and capital growth.

City or coast

The main choice facing potential investors in Romanian property is whether to buy in one of the country’s tourist resorts, most of which are located along the Black Sea Coast, or in the capital city of Bucharest with its growing employment opportunities and increasingly affluent population. A wealthy domestic population is good news for the property investor. It means a higher demand for rental property and a larger domestic market for re–sale, and so makes a more secure investment.

Domestic demand

The demand for property in Bucharest currently outweighs supply. Although development will continue in this expanding city, the population of Bucharest is growing also as job opportunities attract both expatriates and domestic migrants to the capital. Another factor that will affect future demand is the likely expansion of the domestic finance market. The property market is opening up as changes to the rules on domestic lending are making the system more flexible and aligning it to that of other EU members. The rate of lending is quickly increasing, and property purchase is becoming accessible to more people.

Related items

Documents and Reports

	Romania property investment report (368Kb)
Documents and Reports

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