20/02/08
Real estate prices to increase 5% every three months across Romania in 2008
Prices for new dwellings in Romania will increase 5% every three months this year according to Vlad Vlasceanu, manager of the National Real Estate Fair which opens today at World Trade Center in Bucharest.
High demand is the key driver of price increases. Vlasceanu predicts that prices for old dwellings will collapse in the next three years as opportunities to move into in new residential complexes become available.
While the real estate industry has been growing steadily over the last five years, Vlasceanu notes that "real estate had nothing to win from Romania's joining the E.U.". In fact, joining the E.U. actually added to house prices as labour force was lost through construction workers seeking jobs abroad.
Vlasceanu points out that major real estate projects are being undertaken this year in major cities including as Cluj, Constanta and Brasov.
OUR PERSPECTIVE
Vlad Vlasceanu raises a relevant point about labour relocating abroad. Romanian workers will, for example, form a significant contingent of the massive labour force required to construct the 2012 London Olympic facilities. The London Olympics represents a very lucrative prospect for construction workers and it is a development that will prove advantageous for investors: Romanian off-plan property purchased in the near future can be sold expats returning in 2012.