Why Buy Waterfront Property in Romania?
1. Minimal Overall Supply
Whilst Romania is approximately the same size as the UK, there is such a small
area of useable coast within Romania and within the economic catchment of
Romania (which encompasses a considerably larger region) that uplift in
value is occurring far more quickly (and to a much greater degree) than in
any adjacent area.
Estimated between 15% and 20% per annum for the next ten years.
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2.
Much Undevelopable Land
Nearly half of this coastal land area of Dobrogea comprises the Danube Biosphere Delta
region - classified as untouchable nature reserve; a further large
proportion is given over to Rompetrol (the national petrol refineries);
whilst extensive docklands and intensive industrial development occupy
major tracts of waterfront of the main coastal city of Constanta.
The significance of this is that the area that is available for normal
housing and new tourist development is in very short supply.
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3.
High demand from within the Region and from
neighbouring countries.
This limited area is also a focus of hotel development and holiday home
building for the Romanian nouveau riche, and for those visitors from the
land-locked neighbouring countries, the Black Sea beaches of Romania are
most attracting.
The coastline is approximately on the same latitude as Bordeaux and therefore enjoys long, hot summers.
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4.
The market is expanding.
In
January 2007, Romania joined the E.U. This equates to greater
confidence in the economy. If political stability is regarded as
implicit, then investment from overseas is seen to be safe.
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5. Greater accessibility.
The motorway from Bucharest is now a short drive from the Black Sea coast.
Discount airfares are being offered to Bucharest from all over Europe, whilst
Constanta airport, Mihail Kogalniceanu International is now served by 12
airlines.
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6. E.U. Subsidies/World Bank Loans.
These will result in the infrastructure having the integrity that is necessary to support housing growth.
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7. Land in Romania is substantially cheaper than that of it's E.U. neighbours.
The current Romanian price increases are regarded only as a first burst in comparison to anticipated levels
within the next two years. Whilst other recent E.U. entrants are perceived as having already experienced the
main surge of their property price uplift, Romania's land values have lagged behind until very recently.
This clearly represents more
comfort as regards its growth potential. It is hardly surprising
that waterfront land on this sought-after coast is rising in value
disproportionately, not only to other areas of Eastern Europe but also in
comparison to inland Romania.
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8. The mortgage business, and the growth of a home market.
As an
illustration of the under-development of the financial structure to date,
mortgages only account for 2.4% of GDP, in comparison to
60% in the UK. Mortgages are now coming online and accessible to a
major section of the population.
This is an area that will develop fast to meet the
growing needs and rising standards of its populace. Enhanced
affordability equals higher prices!
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9.
Starred by the Media.
Ranked by Channel 4's
Place In The Sun as
"the number one place to make money over the next 10 years".
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10.
Rapid Acceleration of Foreign Investment.
With huge foreign investment driving the
economy (Orange, Vodafone, IBM, Renault, Toyota, ING and Deutsche Banks,
Coca Cola, Daewoo, McDonald's) increasing wage levels and employment, with falling
inflation will lead to higher property prices.
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11.
Waterside Property Price Growth.
Whilst
having a prime uplift all across the E.U., it is only within the last 12
months that significance has been attached to waterfront properties in
Romania. We cannot over-emphasise to our investors the importance of
this fact for growth potential.
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