Mon, 03 Sep 07
A large number of leading international investors are focusing their interest on Romania, reports the Sofia Echo...
Romania is particularly attractive in view of its recent European Union accession, economic growth and low property prices.
Interest has focused so far on the capital Bucharest, but increasingly investors are also reviewing other regional centres such as Cluj, Brasov and Constanta. After Bucharest, Timisoara in the west of the country is the fastest developing city in Romania.
However, the growing interest from international property investors in Romania is not matched by a supply of suitable properties.
Dramatic effect on prices
Due to the availability of 100% mortgage by numerous providers in Romania, there will be much more money available to Romanians who will be chasing a very limited supply of property, which will have a dramatic effect on property prices in the country.
Simon Blakebrough, Investment Broker - Property Secrets, comments: the mortgage market is set for a major and rapid expansion that will see the number of lenders approved by the central bank to offer 100% mortgages rocket from precisely one to double figures.
In fact, as many as 15 more banks are likely to win 100% LTV approve from the National Bank. That’s how many applications are still up for approval.
What we’ll see is a further aggressive drive among mortgage lenders to win market share in the increasingly competitive Romanian market. I think what we’ll actually see mortgage rates driven down to near margin as lenders compete for business.
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