Luxury Apartments in Romania, among the cheapest in Europe
Romanians are searching for luxury through purchases of expensive cars and in particular the purchase of the most luxurious residential projects in the country. Romania occupies 31st position in Europe for the biggest price for luxury apartments according to Global Property Guide, which analyzed 42 markets.
The price for a deluxe apartment of 120 sm2 size in Bucharest is 282,000 Euro with one square meter costing 2,350 Euro according to the report by Global Property Guide.
What does a luxury home mean for Romania? Luxury isn't defined only be the quality of finishings but by the generous spaces offered, brightness, and the viewed offered by the location of the unit.In general the people who seek these types of homes are employees of international companies, directors, businessmen, and investors. "For every luxury unit that exists there is no one client but tens of clients,"
asserted the specialists at DTZ Echinox.
The economy advanced by 8.2 percent in the first quarter against the same period in 2007, and exceeded even the most optimistic expectations, data from the National Statistics Institute reveals.
Last month, Economy and Finance Minister Varujan Vosganian estimated Gross Domestic Product (GDP) growth would stand at 7.5 percent in the first quarter.
The surge comes as a surprise, considering it happened in the wake of difficult international conditions, whilst domestically, the NBR also made efforts to put a damper on consumer spending, after the bank raised the monetary policy rate.
The performance of the economy in the first three months of the year was among the top-five GDP growth rates registered since 1990.After the surprise growth in the first quarter, analysts now believe they must reconsider their outlooks for Gross Domestic Product performance this year.
The Gross Domestic Product amounted to 86.74 billion RON (23.5 million euros) in the first quarter), according to the National Statistics Institute.
The National Forecast Commission chairman Ion Ghizdeanu explained that GDP growth for the whole of 2008 could be higher than previously estimated. "First quarter results were very good. Investments were the decisive factor here, as has been the case over the last two or three years. This is something that aids sustained economic growth," Ghizdeanu added.
The representatives of the real estate market, gathered at the Real Estate Congress Conference 2008, organized in Bucharest, believe that in the next seven-ten years, the real estate market will constantly grow and the demand will be greater than the supply. Due to a lack of liquidity in the Romanian market and a diversification of the supply, especially in the area of apartments for clients with medium incomes, the real estate developers forsee a reduction in the growth rate in the price of apartments in 2008. In the next 15 years, the population of Bucharest will be doubled and there will be a decrease in the price of land in the center due to the fact that the developers will look for more peripheral areas. The director of the financial stability division of the National Bank of Romania (BNR), Ion Dragulin, said that the real estate market in Romania suffers from a lack of exact data and that the market is mostly stable.
People who will invest their money in Romanian real estate could register, in less than 5 years, a profit of 100 %, considering that, according to western standards, the prices on the market are still low, writes the specialized British portal homesgofast.com.
"Investors looking for real estate markets with prices that are incredibly low will have to concentrate on Romania, after the country has joined, on 1 January 2007, the European Union (UE).After 17 years from the collapse of the Communist regime, the request, on the Romanian real estate market, is in continuing to grow." notes the aforementioned publication.According to the British portal, quoted by NewsIn, investors in real estate and everyone that has a good intuition in business are considering Romania to be an ideal location to buy real estate. "In a fast moving market, where the prices start from less than 15.000 pounds, it is no wonder that investors could double the invested money in less than 5 years", it is also claimed in the article published by homesgofast.com.
The positive estimations of the Romanian real estate sector's profitability are shared even by a senior consultant within the residential department of the real estate company DTZ ECHINOX, Victoria Linca. She considers that the degree of attraction of the Romanian real estate domain will remain raised for the investors for another 5 to 10 years. ...
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