FNG Bucharesti Prestige

Number 1 Accountancy Firm PriceWaterhouseCoopers Conducts Market Research for Channel 4 reputable programme, 'A Place In The Sun'.

The outcome:

Romania property prices to rise by 414% over 10 years.

A Place in the Sun: 20 Best Places to Make Money - Friday, 06 Jan 2006. The Channel 4 show presented by property expert Amanda Lamb commissioned statistics from PWC to predict how quickly countries' economies are expected to grow.

Romania has received widespread positive media coverage as one of Europe's best options for property investment. A study carried out by PricewaterhouseCoopers, on behalf of the Channel 4 programme 'A Place In The Sun', reported in 2006 that house prices in the country "are expected" to quadruple within a decade. It placed Romania as number one in their top twenty best places to make money on property in the next ten years. Reasons cited include the country's "extremely good economic prospects" as well as the "massive returns" expected to follow its regeneration and infrastructural investments as a new member of the EU. The programme's report forecast a huge 414% return on investment, suggesting that £100,000 invested in 2006 could be worth a staggering £514,000 in 2016, the increase largely due to the impact of EU membership on the property market. Property prices are said to have increased by 25% on average year-on-year since 2003, presenting property investors with a fantastic potential for capital growth in the future.

This research was conducted amongst all the EU countries, plus the four nations that had applied to join - Bulgaria (now in), Croatia, Romania (now in) and Turkey - and the research took into account the economic growth of the countries, property price rises and how much rental income a buyer can make.

Amanda Lamb of Channel 4's 'A Place In The Sun' rates Romania as the top overseas property investment in 2006 as the programme revealed that property buyers would make the biggest profit if they bought in Romania, over and above any of the other European countries. Months on, Simon Tweddle, Chief Analyst, Property Secrets now tells how the first half of 2007 has seen prices explode in Bucharest. Feisal argues that the exit strategy in Romania looks promising than in most other country's since Romania's accession into the EU! Feisal says...

"In simple, Romania is committed to economic reform and have received an unbelievable fund from the EU to develop the country's infrastructure. This is helping to stimulate the local labour market, where a previous poor nation is witnessing an emerging middle class. Many of these people will focus on buying their first home, and such increasing demand for local property is likely to push up prices as supply is unlikely to keep pace. Well after all, Romania boasts over 22million population and makes it one of the biggest countries in Europe.

Humans are humans. Our biggest expense will always be in our home. Romanians are no different. Put cash in a locals pocket and I bet every time a mortgage application is more desirable than a Ferrari purchase! With the EU offering tax benefits to new EU entrants such as Romania more blue chips are relocating and entering Romania. Such tax benefits include the lowest import and export taxes in Europe. Once again, this creates further jobs and more demand for property. In addition, the EU accession has allowed foreign investors to buy property so now demand is coming from all angles. The key is to focus on where the 'new rich' and 'emerging middle class' will settle as after all, this is where the exit strategy lies. This is why PROBIZ will not look beyond the Bucharest region."