Romania’s recent entry into the European Union has had many international property investors standing up and taking notice of the nation’s rapidly emerging and developing real estate market. The buzz is definitely centred upon Romania become a big player on the emerging property market scene…

With strong political leadership, incredible landscapes and a history that is rich and worth exploring, the reasons why Romania is becoming so popular and likely to remain in demand are obvious. Here are just 10 of the major factors driving confidence in Romania’s property market..

1. European Union Entry Inspires Property Investor Confidence in Romania
Romania’s successful 2007 entry into the European Union opened the doors for easier travel and relocation to Romania, ease of investment into the nation and the development of common ground between this eastern European country and its counterparts in western Europe.

The nation’s current status therefore is very positive for property investors who want to know that their country of investment choice is backed by the EU and is a beneficiary of all that comes with EU membership.

2. Stable Political Environment Makes Romanian Property Investment Attractive
Romania is an emerging democracy that has successfully established a multi-party system; although it is a former communist power this country has had relatively smooth transitions into elected representation. Romania has an elected president as its head of state and a parliament to create its laws and the government’s stability and recent successes in bringing Romania into the EU are big contributing factors driving property investor confidence in Romania.

3. Strong and Dynamic Government Initiatives Drive Romania Forward and Draw Foreign Direct Investment into Property
The Romanian government is moving forward with strong programmes to boost the country’s economy and improve its infrastructure. As it does so, foreign direct investment in Romania is significantly on the increase. In 2006 for example, investments from foreign sources topped EUR 3 billion. As the economy grows, the Romanian government is working to bolster the labour force, increase exports and improve the educational and healthcare systems – and these active reforms not only mean the nation is developing, it means the nation is becoming a more attractive prospect for property investors who can see Romania’s star rising.

4. Expert’s Property Market Predictions Highlight Romania’s Real Estate Attraction
With the likes of Jones Lang LaSalle establishing a strong presence in Romania and other real estate experts committing to the nation, the Romanian property market is accepted as being a high flier. The prices for land and real estate are still considered low by western European standards. Prices in some areas, such as in the heart of Bucharest, have doubled in the last few years and in the current economic climate they are adjusted by the lower demand.

Investors who are getting into Romanian real estate are enjoyed a steady rise in their properties’ values already, and this tangible level of success is drawing strong levels of international interest in Romanian property.

5. Improving Tourism Demand is a Strong Factor Driving Investment in Property in Romania
As the actual home of Vlad Tepes and the inspiration for Bram Stoker’s “Dracula,” Romania has captured more than a passing interest in the hearts of international tourists for generations. But now that travel has been made much easier thanks to EU entry, the tourism market is beginning to open wide in Romania.

Visitors come for the history, the ancient castles, the beautiful Danube, the Carpathian Mountains and of course the Black Sea. You can ski, sunbathe, explore and enjoy Romania more affordably as well now that budget air carriers have entered the skies.

Although only about 75,000 Britons make their way to Romania each year at the moment, the number of foreign travellers is on the increase and according to the World Travel and Tourism Council Romania’s travel and tourism market grew by 9.5% in 2007, 7.7% per annum, in real terms in 2008 and will steady grow until 2017 because the potential is still not exploited properly. As Romania continues to market its tourism appeal successfully to the rest of the world, so property investors are gaining significant confidence that they can tap into this source of money.

6. Diverse Geography Allow for Diverse Property Investment Approaches in Romania
From the legendary Carpathian Mountains that run through the Transylvania region to the Danube and the Black Sea, Romanian geography is such that it attracts a lot of tourism based attention as discussed. Ski resorts, city break locations and beach destinations are all becoming equally popular with travellers and property investors alike because there is such choice in Romania – choice of investment approach, investment asset and investment location which makes the market more appealing to increasing numbers of overseas purchasers.

7. Currently Low Romanian Property Prices Make Short Term Investment Potential Possible
Prices for property in Romania were affected by the global economic and it is a very good period to buy.

With off-plan properties starting from as little as GBP 30,000 and resale detached homes in some of the more remote areas going for even less, getting in on this market is considered highly affordable for many an investor. This of course is making Romania attractive to a wide variety of investors of all income levels and it also means that there is plenty of scope for short term strong increases in underlying prices meaning short term profitability from property in Romania is considered possible.

8. Low Cost of Living Brings Expats and Retirees and Inspires Romanian Property Investor Confidence
Even with its property boom, Romania enjoys one of the lowest costs of living in the whole of Europe. Romanian Properties Limited estimates prices for many goods and services are as much as 50% lower than in other European locales for example and the exchange rate between the pound and leu is also very attractive. The pound is worth roughly almost five lei which means British investors have a great deal of buying power here, as do tourists, expats and retirees – an increasing number of whom are moving to live in Romania and providing an investor with a base upon which it is possible to build a profitable exit strategy.

9. Ease and Affordability of Accessibility Draws Strong Property Investment Confidence
Since its acceptance into the EU, travel into Romania has become much easier with British and European citizens not requiring visas to enter the country for up to three months at a time for example. Romania is readily and affordably accessible by plane, train and by road as well, and the improved and improving accessibility for investors and tourists alike is a very promising factor boosting overall property investor confidence and commitment. As all savvy investors know, a property has to be well located close to reliable and affordable transportation links to maintain its appeal

10. The People and Policies of the Nation Help Make Romania Inviting for Investors
The Romanians have a reputation for welcoming visitors rather heartily and this has been expanded upon recently with the government actively welcoming and encouraging foreign investors to Romania.

This overall atmosphere of welcome coupled with a fairly reasonable tax structure on profits and income make Romania, and in particular Romanian property, very appealing to investors. Capital gains taxes for example are at roughly 16% unless the property is owned for two years or more and then the tax due on profits drops to about 10%. From the people themselves to the policies encouraging investment, Romania is an increasingly welcoming destination for investors.

Romanian property investment is an up and coming trend that is garnering a lot of international attention as of late. As the nation works to bring its infrastructure and economy up to western European standards, many investors believe the time to buy into the improvements of the nation in the form of real estate is now.