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Iasi (Jassy)
IASI is situated in the North-East of Romania with a surface of 5476 km2, representing 2.3% from the total area of Romania.
IASI county has 4 cities (Iasi, Pascani, Tg. Frumos, Hârlău) and 514 villages and is generally considered to be the second most populous city in Romania. Iasi is approximately at equal distance from Budapest and Bucharest.
Iasi is the most important economic, political and cultural centre of Moldovia region and one of the key cities in Romania. Situated in the North-East of Romania, near the border with the Republic of Moldova and 406 km North-East of Bucharest, Iasi also sits in a strategic free-trade zone. Having a leading position in Romania' s economy, the development of Iasi City is connected with its very good geographical location at the crossing of traditional commercial routes from West to East and from North to South..
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Real Estate Investment Opportunities in Iasi- Overview
Real Estate Market
Jacobo Caller Celestino, general manager with Carrefour Romania, says: "The only hindrance when it comes to expansion in Bucharest is the high price of land. Prices per square metre have seen exponential growth in recent years, unlike the inhabitants' purchasing power, which has been considerably slower to grow," states Celestino.
◊ Carrefour announced in the same statement that it would launch two hypermarkets in Iasi.
◊ Iulius Group will invest 250 million euros in two malls in Cluj and Suceava and a mixed real estate project in Iasi. The investments of Iulius Group, a company held by Iulian Dascalu, on the Romanian real estate market will reach 350 million euros until 2009.
"The investments of the group now stand at 100 million euros, to be supplemented by investments worth about 250 million euros in real estate projects in Suceava, Cluj and Iasi. Bucharest is not a target, because there already are enough projects in development there," stated Iulian Dascalu, chairman of the Iulius Group. The company operates the Iulius Mall Timisoara and Iulius Mall Iasi, which totalled about 19 million euros in turnover in 2006.
Dascalu's most important investment is the Palas project in Iasi, which will entail costs of about 150 million euros over the next three years. "The Palas project, located behind the Palatul Culturii (Culture Palace), will include a pedestrian shopping street, two office buildings, a theatre, a skating rink and a three hectare park," Dascalu specified.The project will be developed in partnership with the Iasi City Hall.This makes Iasi home to the first mini-city within a city in Romania.
Real Estate Prices
At present the prices for apartments in Iasi vary according to the area where they are located and the facilities they have. It is important to note that the sm2 sizes in older units are much smaller then at The Bellevue.
The rental market here is strong. There are rental agencies everywhere. You'll have no trouble getting an agent to represent your apartment here. It's one of Iasi's biggest businesses. As a student town filled with foreign students from places like Italy and Greece, it's hard to find a room here at the start of the school season. Students coming from Western Europe more then adding a cosmopolitan feel to the city have created a dynamic rental market. They have the money to pay a more then fair sum for rent.
Prices are about 25% less for rent here then in Bucharest but purchase prices are significantly lower. It is almost impossible to rent an apartment here without paying 6 to 10 months in advance.
There is a real lack of luxury apartments in the city but plenty of wealthy students looking for it. Not to mention, wealthy Romanians, many of them who are home owners outside of the city but are simply bored and would like to have a flat in the city as well -- believe or not, there are a lot of them. Add to the list business executives and international company mid-management and you began to see the market for upper-end accommodation is extremely strong.
You would be surprised at how far your money will go here and what kind of returns is possible.
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