Romania Property Investment News

First half of 2007 sees Romanian property price boom

The price of property in the Romanian capital of Bucharest has shown a remarkable growth during the first half of 2007, according to recently released figures. According to the Romanian financial newspaper that compiled and released the figures, Ziarul Financiar, the first half of this year saw a staggering 27% growth in the average cost per sq. m. of a two-bedroom apartment built between 1980 and 1990. Investors have welcomed the news that Romania’s property market is so quickly realising its growth potential since the country’s EU accession in January this year.

According to the data, property near the centre of the city has seen a particularly rapid and considerable growth in prices. An average two-bedroom apartment, conveniently located near the centre and available as a resale has shot up in value from the €80,000 to €90,000 range to the €110,000 to €120,000 range. This equates to an average cost of such an apartment of €1,564 per sq. m.

The release of this up-to-date information is good news for those who have invested in Romania or who plan to, as it reflects the actual effects of EU accession on a country’s economy and its property market. Prices in the market had already grown considerably before Romania’s EU membership, and last year rose by a country-wide average of 8 – 10%, with growth in some parts of the capital being significantly higher. The factors behind its growth last year still apply today, such as growth in the country’s economy, an increased demand for housing, a more politically stable environment conducive to overseas investment, and the boost to investment levels that traditionally follows admission into the EU.