Bucharest - The door is open
Romania’s membership of the EU on the 1st January 2007 has opened doors for investors who might previously have been shy of dealing with a non-member state.Buying property in Romania has never been difficult but EU membership will make transactions even easier. Romania is already in the process of amending its laws to allow foreign nationals not only to own the property but the land also, which up to now has only been possible by setting up a Romanian company to purchase the land.
It is also likely that with Romania’s accession to the EU, UK nationals should soon be able to get a mortgage in either the UK or Romania to buy property in Romania. And now is a great time to buy as historically countries’ property prices have risen strongly following EU membership. Even before membership, property prices in 2006 were expected to have increased by 30%.
Experts agree that Romania is the best place to invest in Europe for the next ten years and a massive 414% return is to be expected. Tahir Ali, MD of Romania Revealed comments, “Romania represents the classic emerging market opportunity; the attractive blend of great architecture, stunning countryside, relaxed pace of life, low cost airfares direct from the UK, affordable accommodation, low cost of living and a strategic location between Europe, the Middle East and Asia. Multinational companies are recognising these advantages too with numerous eastern European bases being set up in Bucharest especially.”
Bucharest, the capital of Romania (Bucuresti in Romanian) takes its name from the word 'bucuros', meaning joyful, which certainly applies to both the locals and the city itself. From the 1870s to the late 1920s Bucharest was transformed from a mere giant town to a thriving, bustling and fashionable city. Remodelled, by French and French-trained architects, Bucharest was known for its wide, tree-lined boulevards, glorious Belle Époque buildings and a reputation for the high life. It was Eastern Europe's most attractive destination and gained the reputation throughout the world as 'The Little Paris'.
Compare property prices today to those in the real Paris – where tiny studio apartments cost over £160,000 – to ‘Little Paris’ where presently the average property price is just £50,000. But prices are rising rapidly and in 2006 capital growth averaged 20% across the city and this is set to continue with EU accession.
Tahir Ali, MD of Romania Revealed comments “Britons seeking a good investment opportunity in an emerging European market are increasingly turning to Romania. The buying process is similar to Bulgaria and with EU membership this, and obtaining finance, is set to become even easier. Many Romanian families live in cramped housing and there is a real shortage of good quality residential accommodation in the city. Increasingly people are seeking accommodation in the up and coming suburbs such as Tunari.”
Properties available in Bucharest:
- Sydney Residence, Tunari, Bucharest
The stylish Sydney Residence townhouses are located in the up and coming area of Tunari in Bucharest. Tunari is known for its forests and lakes as well as having good transport links and shopping amenities which makes it a great property investment location.
The houses are designed to provide a relaxed and secure environment for families that want to enjoy the best of contemporary living with state of the art kitchens, luxury marble bathrooms, built in wardrobes, landscaped gardens and tiled courtyards. There are 3 unique designs of townhouses to choose from each with 3 double bedrooms, 2 ½ bathrooms, a fully fitted kitchen, an open-plan lounge and dining area, covered courtyard, landscaped garden and a parking area.
Prices start from only £109,000 / €165,000 with the opportunity to partake in a two year rental guarantee contract of 8% per annum.
- Melbourne Residences, Tunari, Bucharest
Modern, stylish and architecturally designed, the Melbourne Residences in Tunari, north of Bucharest, sets a brand new standard for affordable luxury living. The Melbourne Residences showcase a unique blend of contemporary architecture, quality inclusions and open plan living areas that are perfect for today’s professional family.
Each townhouse has been expertly crafted to meet the developer’s exacting brief of providing luxury living at an affordable price. Choose from three very unique designs that each offer three double bedrooms, two and a half bathrooms, separate state of the art kitchens, open plan lounge-dining areas, luxury marble bathrooms, covered court yards, landscaped gardens and parking.
Tunari, with its forests and lakes is set to become the next growth area in Bucharest, following the near neighbouring suburbs of Baneasa and Pipera.
The development is due for completion in the third quarter of 2007. Prices start from £92,600 / €140,000.
- Adelaide Residences, Tunari, Bucharest
Adelaide is an outstanding development of quality one and two bedroom apartments with parking space and kitchen white goods included. Some come with terraces and/or gardens as well. There are also duplex (ie on two floors) apartment available.
The apartments are 15 minutes from the International Airport and in the emerging northern suburbs of Bucharest.
A full rental management programme is available. The developer is so confident that these properties will attract high quality corporate clientele, that it is only charging 9.5 +VAT of the monthly rental. Returns of 10-12% are anticipated on these developments.
Prices start from around £42,330 / €64,000 for a one bed apartment subject to exchange rates.
It takes just over three hours to fly from London to Bucharest. Direct flights from the UK to Bucharest are currently available from under £250. Now with EU membership, the likelihood is that more low cost airlines will be jetting in bringing more and more visitors. Despite the fact that tourism has been on the increase for many years, the city remains a secret to many. But now with the EU door wide open Bucharest’s investment potential won’t remain a mystery for long.
For further information, visit romaniarevealed.com.
