Romanian Real Estate

News Timeline - February 2010 - May 2009

are forecasting Romanian GDP Growth of 4.8% in 2010
& 16.1% in 2011 - report 1st Qtr. 2010

Fitch Upgrades Romania Outlook To Stable On 2010 Budget, IMF

Basescu: Romania sees higher exports to Germany in first nine months of 2009

EIB supports with EUR 400 million development of automotive sector in Romania

PM Boc: Government's goals are country's modernization and jobs

German group Lidl negotiates for Plus chain stores in Romania

Economy Ministry to host Romanian-Chinese business talks

Romanian central bank cuts key interest rate

Budget airline carrier Wizz Air said Thursday its passenger traffic numbers rose 33 percent in 2009, due largely to strong growth in Romania.

ArcelorMittal Hunedoara to invest EUR 43 million in rolling mill

Investments of 24 mln euros in 'Domeniile Ostrov' vineyards

Romania will attract foreign investment of 8 billion dollars in 2010

Romania's Black Sea, the new Persian Gulf?

In the first four months of the year, over 105,793 real estate transactions were registered in Romania, representing a decline of 36.3 per cent compared to the similar period of the previous year. In the first four months of the year, over 105,793 real estate transactions were registered in Romania, representing a decline of 36.3 per cent compared to the similar period of the previous year, Nicolae Liviu Popa, General Manager of the c (UNNRP) declared, HotNews informs.

The notaries’ figures show that 27,472 real estate transactions were registered in Romania, in April, representing a 35.8 pc decline to the similar period of 2008. For this year, notaries expect a decrease by 30 – 50 per cent in the number of real estate transactions registered in Romania. According to UNNPR data, 27,472 real estate transactions were registered this April, compared to 42,821 ones in the similar period of 2008. Moreover, in the first four months of the year, 105,793 real estate transactions were registered in Romania, compared to 166,213 real estate transactions in the similar period of 2008.

Romania’s economy investments for the first 2009 trimester recorded a 0.3% drop against the same period of 2008, according to the National Institute of Statistics (INS). The decrease is due to the contractions of the sum invested in gears and public transport vehicles, whereas investments in the construction of new buildings are growing. Structure equipments and public transport vehicle invested raised 5.7 billion lei, 11.3% less. The new buildings constructions sector attracted 6.01 billion lei, recording a 9.2% increase in contrast with the same 2008 period. Other expenditures are 23.9% up, amounting to 1.06 billion lei.

Investments totalling approximately 100 million euros were made in the real estate markets of Central and Eastern Europe (CEE) during April 2009.

This value represents a 32% increase against the value recorded on the real estate market during the first quarter of 2009, according to real estate consultants CB Richard Ellis.

The Romanian parliament has given the green light to a new project to build an airport for the city of Brasov.

Romania's Chamber of Deputies voted for the new transport hub to serve the location, which is 166km from Bucharest.

Being located in the heart of the country, Brasov offers access to the Carpathian mountains and southern Transylvania.

Brasov is laying claim to becoming Romania's second city as significant foreign investments have been made in this region since 2004.

Romania developers 'should build low-cost property'
Source: Mediafax May 2009

It is currently a good time for property developers in Romania to begin constructing cheaper housing, one real estate group has argued. Henri Faure, deputy executive director of BNP Paribas, told Mediafax that real estate prices in the country are currently too high for investors and there is an opportunity for construction firms to develop low-cost homes worth up to 100,000 EUR (87,000 GBP), Romanian newspaper Curierul National reports.

"The developers must adapt to market needs, to study better its future development. The development of such housing could be a solution to unblock the market," Mr Faure told the news source, adding that if finance becomes more readily available then the property market in the country may open up in the second half of the year.

Knight Frank has expanded its European network into Romania and formed an association with Bucharest based commercial property agency Prime Property Advisers. Prime Property Advisers has been established by the former vice president, Colliers International Romania, Horatiu Florescu, and Monica Barbu, former director of retail in Colliers International Romania. They each have more than 10 years’ experience in the Romanian market. The business totals 20 staff and is located at Calea Floreasca 169 A, B2 Building, 4th floor, one of the prime office buildings in Romania, developed by Portland Trust. Its clients include: AIG Lincoln, Oracle, IBM, Kraft Romania, PricewaterhouseCoopers and Deloitte.

Horatiu Florescu, president & ceo, Prime Property Advisers said: “After more than a decade working in the real estate industry in Romania, and having both achieved the leading positions in the office and retail divisions, Monica Barbu and I thought of creating a company with the best and most experienced real estate consultants in the Romanian market. Our consultants all possess and offer the same level of knowledge, services, and values, thus ensuring that our clients receive the highest services in the market.”

Chris Bell, managing director – Europe, Knight Frank said: “This is a fantastic opportunity for us to associate with an exciting and vibrant new business, spearheaded by the acknowledged market leaders in their respective sectors in the Bucharest market. Not only is the quality of the team second to none, representation in Bucharest further strengthens the exceptional Central European advice we provide our clients across our eight offices through Poland, Czech Republic and Hungary.” The business will trade as: Prime Property Advisers in Association with Knight Frank. The new association brings Knight Frank’s continental European commercial office network to: 17 offices and five associate offices.

Rand Sherif, the executive that runs the over one billion-euro operations of fast moving consumer goods distributor Interbrands, says that consumer confidence has started to rebound in the second quarter, after the company posted 35% decline in sales in the first three months of the year, the [more]

Mortgage loans resumed growth in April after two consecutive months of decline, but bankers remain sceptical and await fresh positive news before they can confidently predict in a market rebound. [more]

"First Home" programme raises apartment prices before it begins
Source: Ziuarul Financiar - 8 June 2009

The Romanian Government took the whole country by surprise with the announcement of the "First Home" programme, but, before the details were released, apartment prices in Bucharest rose in some cases by as much as 20%.

"This is a sign that this programme for first time buyers is eagerly awaited,'" said Valentin Ilie, CEO of real estate consultancy Coldwell Banker.