Foreigners are rushing to buy property in Romania as soon as projects are launched on the market. The value of acquisitions has exceeded 30 million euros in Bucharest this year alone, according to the data supplied by real estate companies Colliers, Regatta and Eurisko.
The buyers are businessmen and investment funds, in particular from the UK, but also from other countries such as Ireland, Spain, Italy and Greece.
"Foreigners are not buying flats in Bucharest for speculative purposes only, as such people also include managers with multinational companies. This trend has become more noticeable this year, as Romania's prospect of joining the European Union in 2007 has become a certainty," Beatrice Dumitrascu, sales manager of the residential department of Eurisko told ZIARUL FINANCIAR.
Foreigners are buying flats even when the building's foundations have only just been laid. Dozens of flats in most residential complexes, which can range in price between 65,000 and 500,000 euros depending on surface area, floor, location and amenities, are purchased by foreign investors who buy homes expecting the price to go up by the time the project is completed, or expect to rent these homes for a good return.
"British investment fund Property Secret bought 40 flats in the West Park residential complex in the Lacul Morii-Militari area six weeks ago, with the acquisition worth 4 million euros," says Anca Bostan, project manager of Regatta, the exclusive broker of the project.
"A number of 160 flats have been reserved in the West Park project thus far, half of which by English investors based on pre-contracts. The flats in the new residential complexes are a good business opportunity for foreign investors, who can get more than 30% profit from resale of these flats, only two years after purchasing them from the developer," says Camelia Bracea, broker with Regatta real estate company. "We've had requests for as many as 40 flats from British, Italian and Greek investors," says Atena Tiplic, senior residential broker of the real estate consultancy firm Colliers, the exclusive broker of the Asmita Gardens project developed in the Izvor area. Half of the 100 flats in the Asmita Gardens project sold thus far were purchased by investors, with about 25 of them bought by foreign businessmen.
Another project in high demand from foreigners is the Central Park development in the Stefan cel Mare area, developed by the Niro Group. Almost 90% of the total number of flats have had pre-contracts signed, with about 30% of the 390 flats sold, bought by investors. A few months before the completion of the project, about 60 flats are owned by foreign investors.
As soon as a project is announced, strategic investors are the first that venture to buy flats in the blueprint stages. They buy almost two thirds of the homes.
When the building nears completion and starts taking shape, the balance of power between categories of buyers is reversed, with almost 70% of the owners being end users, who will end up living in those flats.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
