Insurance News Archive

Bright future ahead for Romanian property market

An economic slowdown may weaken the property market in western Europe but it could have the opposite effect on eastern European countries such as Romania, experts have predicted.

According to Neil Lewis, chief executive of Property Secrets, the credit crunch will affect economies in western Europe following their rapid expansion on cheap supplies of credit, reports worldofproperty.co.uk.

But "Romania is awash with very large funds and many high net worth individuals looking to buy property, land, whole developments and blocks," he continues.

Ryanair's announcement that it will fly to two airports in the country will also boost the Romanian housing market, claims Ben Mason from emerging market property investment company Someplace Else.

Investors are already seeing good results in Romania. Earlier this month the Lewis Charles Romania Property Fund reported that the value of its portfolio had increased to €33.8 million (£25.5 million) from an acquisition cost of € 27.2 million, reports Hemscott.

Ford and Nokia have recently announced plans to establish operational facilities in the country which could also lead to an increase in property prices, reports aboutproperty.co.uk.

22 Feb 2008