Romania property prices rose by more than the EU average during 2017, indicating that the former eastern-bloc country could be a possible option for overseas property investors.
Property prices in Romania increased by 5.6 percent year-on-year in the last quarter of 2017, more than the European Union average according to the latest Eurostat data.
Year-on-year Romania property price growth slowed in the fourth quarter, from 7.2 per cent in the second quarter and 6.2 per cent in the third quarter of 2017. However, this added up to an annual rise higher than that seen on average in the EU.
The EU’s statistical branch said in a press release: ‘House prices, as measured by the House Price Index, rose by 4.2 per cent in the euro area and by 4.5 per cent in the EU in the fourth quarter of 2017 compared with the same quarter of the previous year.’
The Romanian Capital of Bucharest remains the most popular choice for overseas property investors, and investor trust in the property market is now at a record level, , according to the study Residential Market Beat 2018 made by real estate consultancy company Coldwell Banker Romania.
The number of new property developments in the capital is due to double this year compared to 2017. There are currently nine developments in progress due to deliver over 1,000 housing units, with another three due to start.
A total of around 12,000 residential units are currently being built in the city and neighbourhood, and the largest share of the developments (51.5 per cent) are aimed at the mass market.
However, huge growth in middle market projects has been seen over the last couple of years, and now 46.3 per cent of residential projects are aimed at above average incomes and located close to major office centres.
This represents a large increase from just 17 per cent of developments in 2015 targeting the middle market.
Overseas property investors may wish to consider taking advantage of the growing number of high earners wishing to live close to the main office centres in Bucharest to ensure a strong rental yield.