|
Romania is a country of considerable potential: rich agricultural lands; diverse energy sources (coal, oil, natural gas, hydro, and nuclear); a substantial, if aging, industrial base encompassing almost the full range of manufacturing activities; an educated, well-trained work force; and opportunities for expanded development in tourism on the Black Sea and in the mountains. The Romanian Government borrowed heavily from the West in the 1970s to build a substantial state-owned industrial base. By the end of 1989, due to Ceausescu's policies Romania had paid off a foreign debt of about $10.5 billion through an unprecedented effort that wreaked havoc on the economy and living standards.With investment slashed, Romania’s infrastructure fell behind that of even its historically poorer Balkan neighbors. Since the fall of the Ceausescu regime in 1989, successive governments have sought to build a Western-style market economy. The pace of restructuring has been slow, but by 1994 the legal basis for a market economy was establishing. After 1996 the new governement placed new tight monetary policies. Foreign capital investment in Romania has been increasing, but remains significantly less in per capita terms than in most other transition economy countries in East and Central Europe. Since the 2000 the International Monetary Fund has helped Romania with soft loans and some large scale debt forgiveness. Furthermore the Romanian Economy has suffered great unemployment and inflation rates. The huge foreign direct investment has helped though the economy and substantialy decreased unemployment but inflation as well. You can see on the table below the foreign direct investment of Romania
The explosive growth of the Economy Romania’s economy is combining steadily increasing levels of GDP and significantly higher levels of Foreign Direct Investment (FDI) than its near neighbours. 
Gross Domestic Product (GDP) The GDP measures the output that is produced by the whole country. If the GDP increases it shows that the country is either using more efficiently its resources or that is has increased its resources. In Romania due to the heavily forein direct investment more jobs have been created. At the moment several sections of the economy are still not satisfying its demand. For example the construction department its still far behind from the demand that occurs especially in Bucharest but as well as the other large cities. From 2000 Romania has exceeded several expectations as it has an increasing rate of annual growth. 
Real Estate Market The real estate market continues its development with an increasing interest from local and international investors and growing prices on all properties. All its segments have seen an energetic development, with the retail and industrial markets being the most dynamic. Our company now offers you the opportunity to invest before the prices increase rapidly in mostly plots with construction licence without any limitations and private roads. Trust the experts, trust us.
ROMANIA HOUSING BOOM Romania, and particularly Bucharest the capital, is in the middle of a housing boom; significant and in some cases astounding property price rises are being seen. It is a market still in its infancy and yet a market we believe any serious investor in search of high capital growth will find it imperative to invest in. The former Communist regime, which collapsed in 1989, left behind it a housing stock that was completely inadequate to meet the needs of a new and aspirant consumer. Since joining the European Union the younger generation of Romanians have been embracing Western capitalism, growing affluent and demanding modern apartments and studio flats. UNMET DEMAND This demand cannot be met quickly enough. At current construction rates and at current demand levels, that means a time lag of 26 years. This is a housing bottle neck, causing massive price inflation. But this is not a speculative bubble; even as new-builds are coming on stream the demand for quality accommodation grows commensurately. The market is real and sustainable. Year on year GDP growth (circa 7%) and an affluent middle class are fuelling the demand. Undoubtedly, though, much of the fastest price growth will take place in the early years – just as it has in other Central and Eastern European (CEE) markets.
|
