Investors eye rejuvenated romania

Following the announcement that Ryanair is to introduce 50 new routes across Europe, experts at The Homebuyer and Property Investor Show (7-9 March, ExCeL, London) anticipate that Romania will see the greatest property price increase this year...

Excellent transport links are the top requirement when choosing an overseas property according to a survey conducted by the Homebuyer Show*, of those polled 65% said that this was the most important consideration when choosing a home abroad. 

Romania has already seen large price increases following the country’s accession to the EU in January 2007. However, current prices still reflect Romania’s status as a new player in the property market and offers excellent value for money, with a spacious two bedroom apartment in a popular tourist resort valued on average at £100,000.  Prices are around 40% lower than other Eastern European hotspots, but are expected to increase by 15 to 25% in 2008.

Cheap flights boost

Ryanair’s two new routes to Romania will be from the UK to Arad, on the western side near the border to Hungary, and the ancient city of Constanta, which is located on the Coast of Romania, east of Bucharest.  

With a population of over 22 million people, Romania is the second largest country in Central and Eastern Europe, exceeded only by Poland, and demand for good property exceeds supply. Direct flights across Europe, and the country’s strategic location between Hungary and the Black Sea gives the country access to more than 600million consumers and holidaymakers, as such demand for both rentals and permanent homes is set to be high.

Ben Mason, Partner of Someplace Else, comments, “We have seen the huge impact that the presence of low-cost airlines has had on other Eastern European countries, and Romania is set to follow this trend.  The country is one of the most beautiful in Eastern Europe and offers a wealth of history and culture as well as a diverse landscape, from medieval towns, such as Transylvania, to Black Sea resorts, the Carpathian Mountains and the magnificent architecture of Bucharest.

“Constanta is the oldest city in Romania and the home to many of the country’s architectural treasures.  Its historical monuments, ancient ruins, grand Casino, museums, shops, and proximity to beach resorts make it the focal point of Black Sea Coast tourism and its popularity is set to soar with the introduction of low cost flights from the UK, making it a location prime for investment.  The A2 freeway is also expected to be completed this year which will connect the city with Bucharest.”