Introduction
Demand for new property in Romania is at an all-time high and stock is very lmiited. In fact, it has been estimated that there is a shortage of around 965,000 homes across the whole country, with the highest deficit being in Bucharest. These conditions alone would send a market spiraling up.
But in addition, Romania joined the EU at the beginning of the year. In doing so, it had to meet very strict economic, political and financial criteria that now pave the way for foreign investment and increasing demand for property.
So the Bucharest market is set to be one of the hottest property markets of 2007 – a fact supported in recent reports by Jones Lang Lasalle and Ernst&Young that listed the city as the top place to invest during the next 5 years. This view is also shared by many companies who have recently relocated to the city - Deutsche Bank, Orange, Vodafone, Toyota and Goldman Sachs to name but a few.
Such companies are improving salaries and employment opportunities and are attracting more inhabitants to the city in search of jobs. With a maturing mortgage market and with interest rates increasingly under control, there is a new emerging middle class who are eager to move out of crumbling, communist-era blocks and into newly affordable, high-quality family accommodation.
Located in a secure and gated community, our villas at Forest View are a perfect mix of price, style and location to attract this growing sector. In fact, a recent survey done by a local university found that 43% of Bucharesti want to move to individual houses.
With an average discount of 34%, under £17,000 deposits and non-status mortgages available straight from the developer, these villas offer an enticing investment opportunity in a fast growing market.
Read on to find out more and as ever, give us a call on 01273 627 900 to speak to one of our property consultants.
Warm regards,
Alise and Jonty Crossick
34% Below Market Value
At Forest View we have negotiated prices that are on average 34% under the market value of comparable developments in the southern Bucharest region (please see page 7 for more details). You can buy a Forest View villa on a private plot of land for the price of an apartment!
Entry Deposits From Just €25,000
With 25% deposits, you could get a spacious villa on a 260m2 private plot of land from just €25,000 down – that’s under £17,000 in sterling. Completion in the last quarter of 2008.
75% Non- Status Financing Available
The developer of Forest View is offering investors 75% non-status,
loan-to-value financing at 9.9% interest rate over a 20-year term. There are no early redemption fees so you are free to look for a better mortgage deal closer to completion.
Increasungley Affluent target Market
The local middle class, your target onward sales market, is experiencing rapidly growing salaries and affluence. Their buying power is boosted by the wide availability of local financing (a recent change in legislation allows up to 100% loan-to-value financing for the local population1 - see page 11 for more details).
Optional Rental Guarantee
The developer is offering the investors an optional Rental Guarantee at 6% per annum for 2 years. This secures a rental income while the area is developing (please see page 13 for further details).
New EU Member State
Bucharest is the capital of a brand new EU member state. It is therefore set to receive over €30 billion of structural funding2, mainly directed towards improving transport and general infrastructure. The foundations of an already strong state are being strengthened.
Strong GDP Growth
Latest forecasts have predicted a strong economic future for Romania. In fact, an average GDP growth of 6.1% has been forecast for the next 4 years – more than double the EU average3.
Growing International Interest
International investment specialists Jones Lang Lasalle and Ernst&Young see Romania as the top place to invest during the next 5 years.4 Their careful research has a clear impact on the property market that has been forecast to witness 14% p.a. real estate transaction growth in the same time frame5.
The Right Lifestyle
Forest View is a gated, secure community consisting of tastefully developed villas and amenities within commuting distance of Bucharest. It is built in a western style that the locals widely aspire to – 43% of Bucuresti want to live in individual houses with gardens 6.
1. Regulation no.3/2007, 14 March 2007, Romanian Official Legislative Journal
2. www.erbd.com/news/pressrel/2004/137sep21.htm
3. www.economist.com/countries/Romania/profile.cfm?folder=Profile-Forecast
4. http://www.joneslanglasalle.co.uk/ and www.ey.com.global/content/content.nsf/eysee/locations_-_romania
5. Colliers Journal 2005
6. http://www4.pmb.ro/wwwt/pug/pugs/a1_10socioA3.htm