Romanian Property News

Although a low price is an incentive for any buyer, people come on the estate market for two reasons: either to find their dream home or to make a profitable investment. Human taste is probably the hardest concept to measure, so for now it’s worth concentrating on the second alternative: how profitable is the investment. As we are now approaching the end of the explosive growth of Romanian real estate prices and moving slowly towards a more linear increase, potential investors should check whether they will be able to get their money back or, hopefully, make a profit out of it (yes, somebody’s been watching Dragons’ Den recently :) )

To keep the story short, the Global Property Guide website did the maths for a large number of countries and came up with a very positive conclusion: “Yields are generally high in Bucharest”. Based on the current market (getting slightly outdated, as the figures are from December 2006) Romania occupies the fifth place in terms of rental yield for a flat in a prime location amongst the European countries.

According to the figures, at 8.17%, the average rent for a 120sqm apartment in a prime location in Bucharest would pay for its price in 12 years. For comparison purposes, ignoring the substantially higher investment required, a similar flat in London would need 18 years to recover the investment. The figures also indicate that you might want to shop around - apartments towards the suburbs might have the rental yield as high as 10.5% and, as expected, will also cost you less money.

You can have a look yourself at the various real estate statistics starting from the Romania country profile.

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