Romanian Investment: Why you should get a piece of it
10 reasons to invest in Romania
Looking to invest in Romania? Worried about your choice and thinking constantly “Why invest in Romania?”? Here are some facts that will help you make your decision:
1. Romanian Real Estate market
The market speaks for itself. Last year the raise in property just in Bucharest raised by 150% in some areas. Residential space like apartments, villas, houses keep on being built in the outer area of Bucharest. Real estate in Romania has been predicted to be one of the best investment opportunities for the next ten years.
The country forms a complex geographic unit centered on the Transylvanian Basin, around which the peaks of the Carpathian Mountains and their associated sub ranges and structural platforms form a series of crescents. Beyond this zone, the extensive plains of the south and east of the country, their potential increased by the Danube and its tributaries, form a fertile outer crescent extending to the frontiers. Since the late 19th century, in particular, Romania has undergone an economic and social transformation from an agricultural society to an urbanized, industrial society.
3. Romania in the EU
Romania will become a European super state. It is predicted to become the ninth largest country in the European Union and offers Europe and world tourists the mountains, sea, city and village life all at once. Foreign Direct Investment (FDI) is already higher in Romania then any of its neighbors, including Hungary, in second place, which receives a whopping one billion less in FDI a year. Savvy investors are clearly seeing what the future holds and are wasting no time in staking their claim in Romania’s fertile soil.
Romania holds much in store for the unsuspecting tourist. The last of Europe's great final frontiers it is the home of the ecological wonder of the Danube Delta, the Carpathian Mountains, an abundance of natural springs and some of the most pleasant resorts along the Black Sea coast. Romania offers you the opportunity to step between European city life and still-functioning village life, right out of the pages of National Geographic, all within a short drive. Romania, as its tourism board puts it is indeed "simply surprising."
Romania is a vast and naturally blessed land surpassing the quantity of natural resources and ancient landmarks found in a number of more popularized Western European countries. It would take well beyond the contents of this one small article to give justice to what Romania possesses and how it can surprise and bedazzle you. Suffice to say, we live in Bucharest and within two hours we can be in the heights of the mountains and in the midst of some of the most incredible scenery available on this fair earth, where pine tree forests, meadows, running dear, and mountain landscapes all blend together seamlessly. It leaves you with the impression that they were painted by the hand of the Divine.
6. Legislative and economical advantages
Romania has similar legal provisions as in EU, a sustainable economic growth and functional market economy status, a level playing field for foreign and domestic investors and free access to financing, a 16% tax on corporate profits, tax incentives for foreign direct investments with a significant impact on the economy and let’s not forget cheap labor costs.
7. Low prices
The average selling price for apartments in the centre of Bucharest is around €1,667 to €2,300 per square meter (sq. m.), according to Global Property Guide research conducted in December 2007. Houses with grounds can be had less expensively, for around €1,100 to €1,500 per sq. m. But of course the foreigners are less interested in Bucharest, than in Romania’s beautiful countryside, where prices may be very significantly lower.
While the industrial sector was increasing its relative contribution to national income, it underwent a radical structural change. Three branches became much more important: engineering and metalworking accounted for 25.8 percent of all industrial production in 1990, compared with 13.3 percent in 1950, while electricity and fuels increased their share from 13.2 to 19 percent and chemicals from 3.1 to 9.6 percent. Two other branches, metallurgy and building materials, showed a slight relative advance. The main relative declines were in wood processing, paper and food processing.
The average annual temperature is 52º F (11º C) in the south and 45º F (7º C) in the north, although, as noted, there is much variation according to altitude and related factors. Extreme temperatures range from 111º F (44º C) in the Baragan region to -36º F (-38º C) in the Brasov Depression.
Average annual rainfall amounts to 26 inches (660 millimeters), but in the Carpathians it reaches about 55 inches, and in the Dobruja it is only about 16 inches.
Humid winds from the northwest are most common, but often the drier winds from the northeast are strongest. A hot southwesterly wind, the austru, blows over western Romania, particularly in summer. In winter, cold and dense air masses encircle the eastern portions of the nation, with the cold northeasterly known as the crivat blowing in from the East European Plain, while oceanic air masses from the Azores, in the west, bring rain and mitigate the severity of the cold.
10. A road to new investments
Another promising development for Romanian real estate is created by the construction of a new 2 billion EURO super-highway being realized with the financial backing of the EU. This new super-highway built with the technology of the American firm contracted to complete it by the year 2010-12 will dramatically change the face of Romania. It will cut the travel time between Bucharest and major European cities down significantly and literally create new major destinations in Romania, overnight. Cutting through the Western portion of the providence of Transylvania, numerous towns and potential resort districts abounding in raw natural beauty with mountains, springs, and rivers will suddenly be centrally located. Rather then remaining isolated, somewhat hard-to-reach hidden treasures, these gems of Mother Nature will now be as close as turn on the off-ramp. Truly, many of these locations surpass the potential found in the current tourist areas that are easier to reach.