Until the 1960s, Bucharest, Romania's capital, had a historic centre to rival any other European capital, but many of its old buildings were destroyed during the reign of the dictator Nicolae Ceausescu, who replaced them with modern communist-style blocks. Nevertheless, there are some historic neighbourhoods which have survived to the present day, and it tends to be these which represent the best property investment.

Bucharest's most notable historical area, Lipscani, is currently undergoing restoration. It includes such buildings as Manuc's Inn and the ruins of the Old Court of the King. During the Middle Ages, this area at the centre of Bucharest's commercial world. Today, it represents an excellent property investment prospect right at the heart of Bucharest. Much of the city's impressive modern architecture was constructed during the inter-war period, when Bucharest grew substantially, attempting to model itself on European capitals like Paris. Examples from this period include the Cretulescu Palace and the Cotroceni Palace, the current residence of the Romanian President.

The northern suburbs of Bucharest also boast some beautiful turn-of-the century property, including villas, many of which have been recently restored and are in high demand. Much of Bucharest's landmark architecture is now modern, such as the Palace of the Parliament, which not only now holds the Romanian Chamber of Deputies and the Senate, but also the National Museum of Contemporary Art. The Arcul de Triumf, modelled after its namesake in Paris, is also a popular tourist site, as is the Memorial of Rebirth, a marble pillar which commemorates those who fought in the 1989 revolution. More contemporary buildings include the headquarters of the Romanian Architects Association and the Bucharest World Trade Centre.

Developments like these are increasingly found in the northern suburbs of Bucharest, which are most popular both with the local gentry and with foreign property investors. Many tourists Bucharest also choose to stay in these more pleasant areas, which makes buy-to-let property potentially very profitable. Property investors in Bucharest are also likely to benefit from an expanding economy which is giving local residents the means to buy in a better class of area. Entry price for a one-bedroom property, such as an apartment is around £50,000.

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Article published July 2007