Romania Property Investment News

Iasi in Romania is attracting attention among developers

Investors are noting the apparent upsurge in interest in Romania’s second largest city, Iasi, as companies and property developers alike are moving in. Plaza Centers has recently announced it will be starting work on a retail-led development project in the city, the company’s fourth major project in the country. The announcement came shortly after one of the world’s leading automotive suppliers, Delphi Corporation, released the news that it is planning to open a plant in the city.

Plaza Centers’s project has an estimated development budget of €115 million, and a plot size of 46,500 sq. m. This area will combine retail and office space, along with extensive parking for visitors. The plot also comes with the option of building residential property on an area of up to 70,000 sq. m. - Plaza Centers may choose to sell this to a third party. The development is expected to be completed in 2010.

The components plant that Delphi Corporation will be opening in Iasi is expected to start receiving equipment before the end of this year. The development will bring investment and employment to the area, and indeed the quality of the local workforce is one of the main factors which attract businesses to the city.

Iasi is considered the academic and economic centre of its region, Moldavia in north-east Romania. Its eight universities ensure a steady stream of educated graduates, many of whom move into professional roles in the area, creating a need for high quality accommodation. The 60,000 students that are living in the city at any one time contribute to the demand for more affordable accommodation. Iasi is the main commercial centre in the region, and its growing IT industry promises to benefit the city’s economy over the long term. It also has the necessary transport links to support a growing business centre, with the Iasi International Airport – Moldavia’s busiest airport - just 8km away from the city centre.