Head To The Capital - Buying Property In Bucharest

By: Tem Pearson

As the capital city of Romania, it is not surprising that buying property in Bucharest is one of the first thoughts that spring to mind, when it comes to investing in Romania.

Bucharest is positively booming, at the moment, with the demand for residential property soaring as the capital becomes a popular choice for businesses looking to invest in this upwardly mobile region.

Real estate experts suggest that at least 5,000 additional housing units will be required within Bucharest, every year, for the foreseeable future. As a result, many companies have decided to start building apartments to feed this need.

One of these is Trend Imobiliar that has recently unveiled apartments in several locations across the city. Prices for a one bedroom apartment start at 40,000 Euros, with the most expensive apartment topping the price list at 240,000 Euros.

A square metre price for an apartment, across the city, will cost between 400 and 1,200 Euros, making this city a wonderful investment prospect for the future.

Apartments remain the most popular choice, in the city centre, as the demand for housing is primarily from young professionals relocating to Romania for work reasons.

There are also larger family homes available within an easy commute of the city centre, offering more spacious accommodation from as little as 90,000 Euros.

Downtown Bucharest has seen cataclysmic growth of nearly 700 percent, over the last five years. All of this means that prices in this region are higher than in other less popular suburban areas.

It is predicted that these areas will also see large growth, in the coming years. Analysts believe that with the added bonus of joining the EU within the next few years, property prices will, on average, grow by 30 percent between 2006 and 2010.

Currently, the population of Bucharest is around 2.5 million and authorities expect this figure to top 5 million by 2010, which will drive the housing market. Northrop Grumman, an American building firm, is developing several suburban areas into modern American-style communities, both within and outside the city limits.

Job prospects within the city are also increasing, with many international companies choosing to invest in the area. Carrefour, the large hypermarket chain, has recently opened in the area and others such as Tesco and Wal-mart have announced that they are planning to follow, with stores in Romania.

Unemployment, in general, is low at only 6 percent and Romanian citizens have extremely low levels of debt, meaning that a consumer-based society is slowly but surely being built in the capital.

With more jobs and disposable income becoming available, good quality rental apartments are in hot demand and rental yields average around 9 percent. Combine this with excellent capital growth prospects and investors have a real property hotspot!

For the more adventurous investor, plots of land are still available in regions across the city, with a 2,000 square metre plot available for as little as 40,000 Euros, allowing developers to build multiple properties for resale.

Any development will be subject to the usual building restrictions and potential purchasers should seek local, professional advice, before purchasing any development land.

Bucharest is a city on the edge of something big and buying property in Bucharest is one of the closest things to a sure thing that an investor can hope to find!

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