Romanian property investment climate remains strong
16 June 2008
At a time when the credit crunch is biting hard in most countries, things just get better in Romania. Earlier this month, Romania announced the staggering news that its economy grew by a massive 8.2 per cent in the first quarter of this year, more than triple the EU average of 2.5 per cent for the same period.
These impressive economic figures are excellent news for investors in Romania, particularly as the main driving force behind Romania’s economic performance is its booming building industry. The construction sector has seen a hike of 32 per cent, fuelled mainly by the increased demand for property from foreign investors.
Romania’s booming economy is also bolstered by rising Foreign Direct Investment (FDI) and foreign companies are increasingly turning their attention to secondary cities within Romania. These cities such as Cluj, where Nokia recently announced the creation of a €200 million telephone manufacturing site, and Timisoara are proving to be a more affordable and viable option for FDI. The influx of FDI increases employment opportunities and demand for quality housing.
With house prices still relatively low by emerging market standards, Romania’s latest economic bonanza suggests that the time has never been riper to invest in Romanian property.