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Why Romania
 
Price Waterhouse Coopers conducted a study on Romania in 2006, which concluded with a remarkable statement: Romania is the second real-estate market after Manhattan, judging by activeness.

This happens due to the economy potential, population’s number, individual income increase and entering the EU.

 

Romania is placed at the crossroads of the commercial routes that not only link Eastern Europe to Western Europe but also North Africa to the Middle East and Asia. It has Europe's South-Eastern entry port and the only maritime and river port on the Black Sea capable of receiving the biggest ships of the modern world.

 

Nowadays in Europe the investment funds make an efficiency of 3-6%, while in Eastern Europe the return is 5-8% and in Romania this is between 7-10%. The risk assumed by the investment funds, play the main role in establishing these values. The difference between these values consists in the type and value of a property, tenants or law issues.

 

On the short term the residential segment will continue to guarantee the best profit rates. The profit obtained based on residential projects developed in Romania can reach 500% within the next 10 years, due to the fact that Romania joined the EU.

By comparison with the neighbour countries, the price per square meter for residential projects is considerably smaller. In Prague or Budapest the prices vary from 1,200 to 5,000 EUR/1sqm, while in Bucharest the cost of 1sqm is somewhere between 800 and 2,500 EUR. Prices shall double within the following years. The commercial-space segment is also attractive, but the future belongs to the industrial and logistic properties.

 
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