As I woke up early in the morning on New Year's Day and went for my morning cup of coffee I noted for the first time the European Union flag flying side by side next to the Romanian flag on the street below.  As I walked outside of my home, I was stopped by a police officer who handed me a pamphlet entitled "Welcome to the European Union." 
Things seemed different but perhaps only at surface-level. I pondered this as I approached the cafe where I was to meet a friend of mine. As a non-smoker in a country of what often seems to be chain smokers, I prepared myself for the brutal assault on my lungs that was about to occur but never did. Previously an enveloping cloud of smoke, the air was now clean and the ashtray missing here -- smoking was now prohibited in most public places in Romania.
It seemed as quickly as the date changed, so did to an incredible extent, the mentality of the people.  Having suffered from what seemed to be an inferiority complex by being citizens of a developing Eastern European nation, with the passing of the night it was apparent that they had taken on a new self-esteem and confidence as European Union citizens in the EU's now 7th largest superstate.  This monumental paradigm shift that may have taken a generation to accomplish else wise was brought about in  an instant by a major historical event with an undeniable transforming power.
Romania's historic ascension into the European Union has brought about societal change on a number of levels.
For the average reader of this article, it is impossible to understand the immensity of what has happened. Perhaps those readers old enough to remember Hawaii or Alaska joining the other union, the United States or those that lived through the ascension of there country into the EU can understand the full ramifications of such a powerful event.

The average salary in Romania is now close to 500 Euro a month, more then twice what it was a short time ago and credit is now much more readily available with reasonable interest rates. As many Romanians own there own homes from Communist times and property prices have swelled, Romanian's are moving up to newer and more luxurious apartments and residential housing units - giving birth to a new mega suburbia.
Investment is pouring in. Romania's has benefited from the highest foreign direct investment in Central and Eastern Europe in the past year leading to a number of ambitious new projects.
Bucharest has already put nearly 10 million Euros into the renovation of the city's historical district. The currently dilapidated zone is home to ancient architecture dating back as many as 500 years, cobblestone pathways, and a small smattering of trendy clubs, restaurants, and shops that gives a glimpse into the future of the area.   Bucharest's grim underground, notorious for it's street children problem spans most of the city with one of the continent's largest subway (metro) networks.  City hall has unveiled plans to make a portion of this area "the city of 1001 trees" and host to cultural and leisure activities, representing a total investment of some 200 million Euro.
In less prosperous times, little consideration was given to ascetics but times have changed. A premium is placed on bright cheery colors and ultra-modern finishings. As gray as the old neighborhoods of apartment dwellings are is as colorful as the renovated areas and new suburbs have become.
Romania is a country where opposites seem to blend together naturally.
The government teamed with foreign investors are transforming cities and towns. An old forgotten Romanian town in the mountains -- the next ultra sheik mountain resort with aerial tramway system and artificial snow guaranteeing skiing a minimum six months out of the year.  New high tech mini-cities popping up next to historic downtown areas – it's all happening in the new Romania.
It's been said "The problem is not in the way things are, but in the way we see them." This is keenly accurate in Romania today.
The untapped potential of much of Romania has created unprecedented opportunity.  You are talking about a country of 22+ million inhabitants in the most powerful economical union in the world. One of the largest counties in Europe, Romania has it all: mountains, seaside, castles, and modern cities.  New super-highways connect Romania with the rest of the EU and travel through the country for Europeans, Russians, and others heading to places like Istanbul is almost inevitable.  The population of the country is increasing in wealth at a dramatic pace. (Do you remember the last time your salary doubled in a few years?)
What does all of this add up too?  Once-in-a-lifetime opportunities for ready investors.
Real estate prices have risen as much as 100 percent in the eight former communist states that joined the EU in 2004, driven by buyers from Western Europe . That's a tremendous profit for just 2 years time. Many independent analysts predict that Romania will surpass all EU ascension countries in terms of profitability.
Herbert Stepic, chief executive of Raiffeisen International Bank, believes price will continue to rise until they reach Western European standards."I see no signs of a bubble," Stepic said.Indeed, in other EU accession countries, prices continue to accelerate.In the Budapest city center, prices are expected to jump 15 percent this year.
In Warsaw, the city's most expensive apartment building, called the Belvedere Residence, is sold out, though work is still under way. Unfinished penthouses were being sold this year for 21,000 zloty, or $6,903, a square meter.
Contrast that with Bucharest where prices  for ultra luxury developments are still in the two thousands. The profitability of the market is far from tapped. For a list of off-plan opportunities, click here.
"The sky is the limit," stated one developer.

But the question is how do you profit from all the activity?
The rule of thumb for investors this year in Bucharest should be to consider only new properties offered at below current market value prices. Some exceptions to this rule may exist, including well positioned luxury units poised for additional significant property value growth.
However, the real attraction to Bucharest is it's massive middle-class population looking to move up.Tired of old concrete blocks for homes but still able to fetch a hefty amount of cash for them on sale, many Romanians have the financial wherewithal, with the additional help of new introduced and reasonable credit to purchase nicer units in decently priced new buildings. That's why we have been major advocates of the sensationally priced Planorama development which meets all of the criteria above. For details, click here.
The Transylvania region has shown some of the most substantial growth over the past year.   There are a few investments, you'll want to consider here but none more so then the following:.
Log cabins are a great prospect for investment in the region and can come in at well under 100,000 Euro.  The two hot areas for log cabin development are Bran and Rasnov. I've been advising log cabin buyers to choose Rasnov.  That's where the Nicole Kidman, Jude Law film 'Cold Mountain' was filed in large part due to it's spectacular uninterrupted natural scenery. Bran is home to the so-called Dracula's castle.  Choosing Bran can cost an additional 20% but does not bring an additional value of 20% to your investment. In fact, the reverse might eventually be true.  To learn more about the log cabin opportunity, click here.
Brasov, the main city in the region offers the areas only real night life and cultural activities, is close to skiing and natural reserves and is one of the largest cities in Romania. New homes can be had as low as 600 Euro per square meter and are a safe bet as they combine resort and big city investments in one. To learn more, click here
As exotic as Romania might sound, the best investment opportunities are often found in the more exotic regions of Romania.