The key reasons for investing in Romania now:
Romanian economic reform and growth
Romania is one of the fastest growing countries in Eastern Europe. Economic reforms have brought drastically reduced inflation and interest rates and currency stability. This economic climate combined with low labour costs has attracted…
Foreign direct investment in Romania
Foreign investment in Romania is among the highest in Eastern Europe. Investment in manufacturing, such as Renault’s auto parts business, is still strong but has been superseded by a recent surge in other sectors such as telecoms (Vodaphone invested €2.6 billion in 2005) and retail (Carrefour, Tesco and Walmart have all made substantial investments in Romania recently).
Nascent foreign investment in property
Perhaps most importantly for the land and property investor is that foreign investment in land and property is only just starting to build. The widespread phenomenon of dramatic house price rises witnessed in other East European countries has not yet occurred. Part of this is driven by the virtual non-existence of the mortgage and credit market. Which is soon set to change. This combined with the growing affluence of local people and corresponding increases in demand for housing is key to Romania’s attractiveness.
EU Membership
Romania has now achieved membership of the European Union. This is a guarantee of increasing economic, social and legal reforms, including fully removing all barriers to foreign investment. The prospect of EU membership has focused minds in the Romanian government and brought about a sense of optimism among the local people.
