Property Select - Overseas Property News

Demand drives up Romanian property prices

Wed, 19 Mar 2008 00:00:00 GMT

High demand for property in Romania has led to a significant increase in house prices across the country, new figures have revealed.

Anglo-Romanian Development (ARD) stated that the price of a typical home in the eastern European country rose by 40 per cent last year.

However, data from the organisation showed that the figure in individual locations was much higher.

For example, property values in the capital city Bucharest were said to have risen by 63.5 per cent during this 12-month period.

ARD cited high demand for property as the main driver of growth, as the domestic population has become wealthier in the wake of Romania's EU accession.

However, the economic benefits and market performance could make the country equally enticing to overseas property buyers.

Alex Pintea, managing director of ARD, commented: "I fully believe the real value and potential in Romania is at the top end of the market."

This comes after the National Statistics Institute stated that during the first year of its EU membership, Romania experienced economic growth of six per cent, reports BalkanInsight.com.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.

Economy grows in Romania

Thu, 13 Mar 2008 00:00:00 GMT

Officials in Romania have revealed that the country's economy continued to grow during 2007.

The National Statistics Institute stated that during the first year of its EU membership, Romania experienced economic growth of six per cent, reports BalkanInsight.com.

This increase in gross domestic product was largely attributed to the expansion of its construction industry.

Figures showed that the money generated by this sector went up by 33 per cent, possibly because growing tourism has resulted in the need for new properties to be created across the country.

In addition, the holiday industry itself was also found to be contributing more to the economy, with revenues increasing by ten per cent.

This comes after Ziarul Financiar cited government figures showing that Romania attracted 7.7 million visitors last year.

According to the data, this is 27 per cent higher than the amount recorded 12 months earlier.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.

Romanian tourist market set to grow

Wed, 12 Mar 2008 00:00:00 GMT

Authorities in Romania are predicting an increase in the number of foreign arrivals this year, it has been reported.

According to Ziarul Financiar, the government is expecting visitor numbers to be ten per cent higher than in 2007.

This means that a greater number of holidaymakers will be seeking to reserve rental accommodation in prime locations.

Therefore, property in these areas is likely to become highly sought-after and increase in value as a result.

Furthermore, owners of these houses who choose to let them out to visitors will be able to collect the proceeds of the rental income.

Official figures cited by Ziarul Financiar show that the predicted increase in tourism comes in the wake of a 27 per cent surge in visitor numbers over the last year.

Romania's growing appeal last year was partially attributed to the international prominence of Sibiu, as it was 2007's European Capital of Culture.

Last year was also the first year of the country's membership of the European Union.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.

Romanian market set for possible boost

Tue, 12 Feb 2008 00:00:00 GMT

The appeal of Romania among overseas property buyers could be set to increase significantly.

According to HotNews, the government in the European country is keen to boost its tourist sector with a new promotional drive.

About £1.5 million is to be spent on a branded marketing campaign which will be aimed at people in countries where officials believe the image of Romania could be improved.

Specifically, Italy and Spain will be targeted in a scheme which will be partly subsidised by the European Union.

Romania became a member of the international organisation at the beginning of 2007.

The strategy may serve to boost its economy in areas outside of tourism, as an increase in visitor numbers will encourage overseas property buyers to invest in the country.

This is because tourism creates demand for temporary accommodation, therefore allowing investors the opportunity to profit from the rental income.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.

Romania recommended to investors

Tue, 5 Feb 2008 00:00:00 GMT

Overseas property buyers have been advised to consider purchasing rental accommodation in Romania.

Philip Groves, a marketing consultant from the UK, is currently engaged in purchasing a one-bedroom apartment in the country.

Speaking to the Telegraph, he said he believed Romania was a good market in which to invest because it appealed to both business and leisure travellers.

Furthermore, he stated that low-cost airlines were opening up the country to both groups, making it a highly affordable and accessible place.

However, Mr Groves emphasised that he was not solely depending on foreign visitors for rental income.

He commented: "It's a strong domestic market so I'm not reliant on international factors to provide tenants or capital growth."

Mr Groves added that as a result of its recent accession to the European Union, the government was investing in a series of infrastructure improvements.

Romania became a member of the EU in January 2007.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.

Long-term investors 'should buy in Romania'

Wed, 9 Jan 2008 00:00:00 GMT

Overseas property buyers who want a long-term investment have been advised to look at the Romanian market.

The eastern European country was recommended by the SaveBorrowSpend website as a possible option for those who were not seeking quick returns.

Romania was praised by the online portal for its bargain property prices, which means that growth in the market could give it a higher future sale price.

In addition, SaveBorrowSpend said that many real estate agents believed the country offered the potential for getting good returns within a few years.

The website commented: "This is probably seen as a long-term investment as the property market is in its infancy."

Prospective buyers were also told that Romania's skiing industry was fairly well-established.

This suggests that investors could also gain returns by letting out their property to visiting holidaymakers.

Romania became a member of the European Union at the start of 2007.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.

Recent EU entrants see increased air traffic

Wed, 19 Dec 2007 00:00:00 GMT

New additions to the European Union saw an increase in the number of air passengers last year, new figures have revealed.

According to Eurostat, the overall number of people flying overseas in Europe rose by 4.7 per cent between 2005 and 2006.

Countries such as Romania were said to have seen particularly strong growth during this period, with air passenger numbers going up by more than a third.

This shows that the country saw a surge in popularity in the run-up to its entry into the EU in January 2007.

Since its accession to the international alliance, more flights to Romania have been introduced from places such as the UK.

The introduction of flights between Stansted Airport and Bucharest by Blue Air this year suggests that the popularity of the country will continue to grow.

An increase in the number of visitors will be especially good news for Romania's tourism industry and related sectors, such as construction.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.

Romanian central bank 'working to improve economy'

Fri, 23 Nov 2007 00:00:00 GMT

All efforts possible are being made to tackle inflation in the Romanian economy, a leading bank official has said.

Mugur Isarescu, governor for the country's central bank, has sought to reassure investors following inflation of the leu, which hit a five-year high against the euro in July, reports the Guardian.

Turbulence in the money markets has existed all over the world in the last three months, which has had an effect on Romania's currency, he explained.

"Investors … need to know that the central bank will work with all intelligence to diminish [its] negative effects," Mr Isarescu said.

His comments come as one euro is currently equivalent to 36,095 leu and central bank officials have recently called on the government to tighten fiscal and wage policies, the article notes.

Romania's gross domestic product growth is expected to fall from a predicted 5.8 per cent rate in 2007 to between five and 5.5 per cent in 2008-09, the Economist predicts.

Investors 'should look at recent EU entrants'

Mon, 29 Oct 2007 00:00:00 GMT

Overseas property investors have been advised to consider purchasing in eastern European countries that have recently joined the EU.

Speaking in research commissioned by the Daily Telegraph, Knight Frank stated that since achieving full membership, many countries in the region have enjoyed economic growth.

The organisation predicted this trend would continue during the next decade at least, meaning that countries such as Romania and Hungary could be good markets for overseas investors to consider.

Liam Bailey, head of residential research at Knight Frank, said: "We are highlighting the new accession states because this is where the big employment and economic growth will be concentrated in the next ten years."

He added that this was "very likely" as it had occurred before in other countries after they joined the EU, such as Portugal and the Republic of Ireland.

This comes after Indian travel website Make My Trip said that EU membership was one of the factors behind the growing economic prosperity of many eastern European nations.

Speaking to Express Travel World, chief executive Sachian Bhatia said this had also made them more attractive to tourists.

Property Select offers a comprehensive selection of overseas property, news, members club and reviews of the latest property developments.

'Simple economic factors' to drive Romanian market

Mon, 20 Aug 2007 00:00:00 GMT

A set of simple economic factors will drive a heated Romanian property market over the near future, one expert claims.

Investment specialist Property Secrets says that there will be a huge surge house prices in Romania - as finance providers in the country start to offer 100 per cent mortgage products. This will make much more money available to Romanians, who will be chasing a limited supply of property.

This inevitably will lead to pronounced growth in prices, says Simon Blakebrough, an investment broker at Property Secrets.

"Well, the mortgage market is set for a major and rapid expansion that will see the number of lenders approved by the central bank to offer 100 per cent mortgages rocket from precisely one to double figures," he told news and classifieds site Easier.

"In fact, as many as 15 more banks are likely to win 100 per cent loan to value approval from the National Bank. That's how many applications are still up for approval.

"What we'll see is a further aggressive drive among mortgage lenders to win market share in the increasingly competitive Romanian market. I think what we'll actually see mortgage rates driven down to near margin as lenders compete for business."

Despite the fact that Romania's growing middle class are increasingly becoming alert to the opportunities offered by buying off-plan, supply still remains some way short of demand, with only 3,000 new units built in Bucharest in 2006.

Property Select offers a comprehensive selection of overseas property in Romania, news, members club and reviews of the latest property developments.