Romanian holiday homes market to keep growth momentum
08 July 2008
The Romanian holiday homes market still has growth potential and could follow Greece's example, Extenso real estate developer said in a report. The accelerating current growth of the domestic market will be followed by a period of calm, the report said. According to official data, the prices of Greek homes have increased by 214 per cent from 1993 to 2006. However that growth pace has slowed down in the last couple of years, with prices growth falling to 2.21 per cent in 2007, compared to 12per cent growth of the previous year.
The hike in the reference interest rate for mortgage credits in Greece and Great Britain was the main reason behind the market’s slowdown, with most of the foreign investors being British, according to the Extenso report. However in certain coastal areas of Greek island Crete the prices grew last year by an annual 20 to 30 per cent.
”In Romania the houses in some areas and localities will be considered as investments and will have a yield two to three times larger than others. Bucharest and the seaside will be the champions" Mirela Rosca, manager of Extenso said.