Domestic demand driving Romanian property growth
Accession to the EU has increased Romania's standing among the rest of Europe and the country is receiving an increasing number of foreign visitors and investors.
However, it is not only investors from countries such as the UK driving property prices; domestic demand for more modern properties has also experienced an upsurge, local developers report.
Average property prices rose by 8 to 10% in 2006 (hotspots saw much higher growth) and 80,000 Romanians signed up for mortgage deals, Canton Repository reports.
Marian Tudor, an estate agent in Bucharest, explains that Romanians are moving out of the cramped apartments built under the dictator Nicolae Ceausescu in droves.
"Everyone wants to move out of the drab Ceausescu buildings. And many of the buildings that were built before communism are not earthquake-proof, so are not a good buy," he said.
Radu Zilisteanu, spokesperson for the Romanian Association of Real Estate Agents, said land with development potential could increase in value by up to 25% in 2007.
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