| "Moscow aside, if you look at central and eastern | | | | investment rates there and expected |
| Europe, Bucharest is probably the biggest and | | | | investments in Romania will most likely push |
| most interesting opportunity for property | | | | Romania on top.Tesco and Walmart have already |
| investors right now," says Edit Vesser, corporate | | | | announced plans to follow in the footsteps of |
| director for CB Richard Ellis in Bucharest in an | | | | European giant Carefour to enter this thriving |
| article recently published by the esteemed Irish | | | | market.Unemployment here is at just 6%, one of |
| Times.In February 2005, I first alerted readers of | | | | the lowest rates in all of Europe. Combined with a |
| Escape Artist to the incredible potential latent in | | | | low per-head personal debt, more spending cash, |
| the Eastern European country of Romania. | | | | and the introduction of credit an amazing new |
| Several readers who contacted me purchased | | | | consumer based society is being built.Statistics |
| land through a realtor that I advised them of in an | | | | show that inflation is low and GDP is high (three |
| area outside of the city limits of Bucharest at 40 | | | | times higher in many cases then in Western |
| Euro per square meter. That land today is now | | | | Europe) in Romania.The vision of the Bucharest |
| fetching an estimated 200 Euro per square | | | | metropolitan area is quickly becoming a reality. |
| meter.I was cautioned by colleagues to refrain | | | | Farmland near Bucharest will soon resemble |
| from quoting the above figures as they seem | | | | suburban Detroit or Chicago, complete with |
| quite sensational. Indeed, they are representative | | | | modern family homes, shopping complexes, and |
| of unique successes and do not represent the | | | | modern highways. This phenomenon has already |
| average gain to be expected on property held in | | | | occurred in some areas outside of the city |
| the Bucharest area for less then one year. | | | | limits.2,000 square meters plots of land can now |
| However, such gains are possible and it is not | | | | be purchased in the new suburban district of |
| uncommon to hear of such success stories | | | | Bucharest for 40,000 Euro (That about $48,000 |
| occurring from transactions made on the current | | | | USD). That' s about $20 per square meter in a |
| market.These exceptional cases serve as an | | | | city where downtown prime real estate is going |
| indicator of the general trend of rapid growth in | | | | for as much as $2,000 a square meter and |
| value of raw land in what is known as "the new | | | | property in the currently developed suburban |
| suburbs of Bucharest."The price of land has gone | | | | region goes for between $150 and $350 a square |
| up by 60-70% over the past several months, due | | | | meter. Between now and the years proceeding |
| to the high level of demand on the market | | | | the EU ascension of Romania (analyst predict |
| triggered by the high profitability of investing in | | | | Romania will join in 2007 -2008 and growth will |
| land, a report by CB Richard Ellis (CBRE) shows.In | | | | continue at impressive rates up to about 2010) |
| a previous article for Escape Artist ( I indicated | | | | property prices in the new suburbs should |
| land as potentially the best investment for the | | | | increase at least 30% per year.The key to |
| average investor in Romania. It poses the least | | | | realizing profit is to buy land in an area where |
| hassles and headaches and tends to generate the | | | | developers are looking to build in a strategic |
| most profit-growth in the shortest time. The | | | | location, where other like-minded investors have |
| verified rate of growth of property values | | | | also invested in land. This is where a reputable |
| between the time that I made this suggestion to | | | | estate agency comes into the picture. As they |
| readers and the publication of this article, given | | | | usually have direct relationships with developers |
| further credibility to my speculations. | | | | and have a keen understanding of where to buy, |
| I am not alone in my view; Razvan Camuescu of | | | | they more then earn their 5% or so |
| RHR, a Bucharest property services firm in his | | | | commissions.New structures have now been put |
| interview for the aforementioned recent Irish | | | | in place to allow foreign investors to invest in land |
| Times article further comments, "Outside | | | | without formation of private companies (foreign |
| Bucharest we have seen the price for some land | | | | citizens may not own raw land as private |
| double over the course of two months." He adds | | | | individuals) and the process of forming a company |
| that investments in apartments in the center of | | | | for such a purpose is now a relatively expedited |
| the city no longer necessarily represent a part of | | | | one - when you are working with someone who |
| a good investment strategy.Yes, all of this growth | | | | knows what they are doing.Deals most absolutely |
| could be considered astronomical, daunting, | | | | exist outside of Bucharest as well. The long term |
| magnificent, maybe even a little scary if not | | | | investor should also consider naturally stunning land |
| properly managed. This, however, is exactly why | | | | located in proximity to up-and-coming ski resorts |
| Romania has become the next big target of the | | | | in Transylvania and incredible bargains at the |
| international investor."It is the next big location in | | | | excellent vineyards located between Bucharest |
| this part of the world, with many people looking | | | | and the aforementioned ski resorts. These |
| to get involved here having moved on from | | | | opportunities represent excellent investment |
| Budapest or missed the property train there". | | | | opportunities but often requires a longer "hold |
| "The big guns are already getting involved | | | | time" on the investment to reap full potential |
| alongside the private investors." (source The Irish | | | | returns.More details on those properties, as well |
| Times, September 2005)The key to raw land | | | | as on opportunities in Bucharest are available for |
| investment in Romania is a) knowing where to | | | | readers by contacting me directly.One final piece |
| invest and b) when and how to sell. | | | | of advise - the majority of North American |
| Bucharest as the capitol of Romania and soon EU | | | | investors who have contacted me come with a |
| capitol city is the the star attraction of all | | | | sound American mentality related to real estate |
| Romanian land investment opportunities.Prices in | | | | investment. No doubt, this mentality is tried and |
| the downtown area of the city may have all but | | | | proven in America and represents a very |
| peaked after years of significant growth but the | | | | successful model for property investment on that |
| trend of high growth in a short-time frame has | | | | continent. Europe and Eastern Europe in particular |
| just begun in the area outside of the city limits | | | | represent dynamically different markets that |
| which is pegged as the new Bucharest suburban | | | | require the investor to approach an investment in |
| district.Bucharest is inhabited by more then 2.5 | | | | this region with an open and teachable mind.This |
| million people and that number is expected by | | | | has caused a much higher success rate among |
| many authorities to more then double to over 5 | | | | European and International investors to date in |
| million by 2010 by the rapid development of new | | | | Romania then for American ones.The tried and |
| housing complexes inside of the city and the | | | | true model for cashing in on the amazing changing |
| expansion of city limits with the introduction of | | | | face of Romania and particularly metropolitan |
| new American-style suburban living there - now | | | | Bucharest, tweaked and perfected by |
| available to the average Bucharest-ian who is | | | | professionals from the West operating in this |
| experiencing higher earning power coupled with | | | | region, has proved to be the best model to |
| increase access to credit.Northrop Grumman, the | | | | follow.Perhaps the Irish Times article, summed it |
| large American construction firm is already in the | | | | up best ".... the key thing is to have good |
| market constructing new homes along with | | | | contacts, local knowledge, and someone here who |
| scores of other European and international building | | | | you can trust."Romania presents the opportunity |
| firms of reputation. As leaders in their industry, | | | | to make extremely profitable investments in a |
| they are fully convinced that the projections for | | | | future superstate of the European Union. It |
| suburban Bucharest will become a current | | | | represents the transformation of a nation where |
| reality.The savvy world investor, according to | | | | 30% of the population has never turned on a |
| surveys, now identifies Romania as one of the | | | | light, into a Western cosmopolitan nation at a |
| top three investment locations in the world (along | | | | maddening pace. Under control, this chaos can be |
| with China and Brazil) and the number one | | | | extremely profitable for the savvy investor.Kevin |
| opportunity in Europe. Foreign Direct Investment | | | | Stillmock has been on the ground in Romania |
| in Romania is at roughly 3.5 billion dollars currently | | | | advising foreign investors for the better part of a |
| tied only with Czech Republic for the number one | | | | decade. |
| spot in Central & Eastern Europe. Decreasing | | | | |