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Property Investment in Romania 2008

Romania is one of the EU's newest members, yet it is making its presence felt on the overseas property investment stage. Situated in south east Europe, investor interest has, until now, focused on Bucharest and its buy-to-let market. But recently, areas in the central Transylvanian region, such as the cities of Cluj-Napoca and Timisoara, are also attracting both business and private investors.

Along with its stable political environment and booming economy, Romania offers a flourishing tourist industry and one of the most exciting property markets for investment. The World Travel and Tourism Council (WTTC) predicts that Romania is set to become the sixth fastest growing tourism sector in the world, with a growth projection of a robust 7.9% per year from 2008 to 2016.

Romania's latest tourism Master Plan, unveiled in 2007, aims to reach an annual landmark of 10 million visitors by 2016. With record visitor numbers of over 7.7 million in 2007 (an increase of almost 28% on 2006), tourism is one of the fastest developing sectors of the economy and has, according to the WTTC, huge potential for growth.

2007 saw spectacular GDP growth of a robust 5.8%, further strengthened by a staggering 8.2% in Q1 2008, according to the Economist Intelligence Unit - one of the highest in the world.

Romania is one of the main recipients of foreign direct investment (FDI) in Eastern Europe, and according to ARIS, the Romanian Agency for Foreign Investment, foreign investment from January to April 2008 increased by over 100% compared to the same period in 2007.

Romania positively encourages foreign investment and according to the Ernst & Young SEE Attractiveness Survey, Southeast Europe (April 2008), Romania is classed as the most attractive investment country in Europe, beating Turkey and Greece.

Romania has already received widespread positive media coverage as one of Europe's top investment opportunities. The country has seen considerable property price growth since EU accession despite the current economic downturn in many other countries and the global credit crunch.

Market experts agree that property values are being pushed up because of a high demand for housing, despite the fact that the Romanian authorities are responding by building new developments and opening up more areas to prospective buyers.

A booming economy, fast-expanding tourism and flourishing property market combine to make Romania one of the best places in Europe to invest. Like its versatile tourist industry, property investment in Romania also offers a variety of options with buy-to-let and resale opportunities particularly strong in the capital and Cluj-Napoca.