Even before the country joined the European Union in January, the national average price of a Romanian property was said to have been rising at a steady rate - estimated to be around 30 per cent last year.

What's more, a study jointly complied by Price Waterhouse Cooper and Channel 4 last year named the Balkan country as the top investment destination for the next ten years. According to their data the return on investment of a Romanian property will grow by an astonishing 414 per cent over the next ten years.

"Romania is rapidly developing and this is definitely the time to invest in its country, whether it is as a pure investment or as a holiday or retirement home," confirms Philippa Weitz of PWT in Romania. "Its acceptance into Europe ensures that Romania is now firmly on the map."

Tahir Ali of Romania Revealed agrees with Weitz's sentiments: "Romania represents the classic emerging market opportunity: the attractive blend of great architecture, stunning countryside, relaxed pace of life, low cost airfares direct from the UK, affordable accommodation, low cost of living and a strategic location between Europe, the Middle East and Asia." So, surely all this means that by investing in Romanian property you can't fail but to make money. Unfortunately, this is not quite the case. "We mustn't leave our brains at the airport," stresses Weitz. "Not all parts of Romania have such a buoyant property market, or have correct and democratic procedures free from corruption. "It is for this reason PWT has chosen to concentrate on areas in western Romania where tourism and commercial activities are expanding rapidly, providing the good value for money and free of corruption. These ingredients are important for the long-term confidence of our customers."

Weitz says that Timisoara, known locally as 'Little Venice', is just one area of Western Romania that should prove a safe bet for investment purchasers. "The residents of Timisoara have spent many years cooped up in small flats built by Nicolae Ceausescu and are now building spacious houses in the suburbs – this means that the suburbs are an architect's dream with architect-designed house gleaming with glass and chrome dotted around what was green fields not long ago," she explains. "In my opinion it is in these areas that the best property investments are to be found. If it is pure property investment you are looking for look no further with prices having already doubled over the last two years from around 10 euros a square metre; today these prices are 30 euros a square metre, and the forecasts are that these same pieces of land will be selling at 75 euros a square metre by 2007," she adds.

Ali, however, cites the nation's capital, Bucharest, as the ideal destination in which to look for a Romanian property." Bucharest takes its name from the word 'bucuros', meaning joyful, which certainly applies to both the locals and the city itself," he explains. "Bucharest is a thriving, bustling and fashionable city. Remodelled, by French and French-trained architects, Bucharest is known for its wide, tree-lined boulevards, glorious Belle Époque buildings and a reputation for the high life. It is arguably Eastern Europe's most attractive destination and gained the reputation throughout the world as 'The Little Paris'." Ali continues: "Compare property prices today to those in the real Paris – where tiny studio apartments cost over £160,000 – to 'Little Paris' where presently the average property price is just £50,000."

Timisoara and Bucharest are just two destinations which should represent good value in the Romanian property market for the foreseeable future. The country's Black Sea Coast is another area where Romanian property should continue to stay in demand helping the market to thrive.
So while you're not guaranteed financial rewards when it comes to buying in Romania, choose your property and location carefully and you'll discover just why this Eastern European country has had so many experts salivating at its potential.

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Read articles about other eastern European emerging markets:
Blizzard of interest in Bulgarian ski property?
Romania property market exciting but risky
Croatia's Dalmation coast has much to offer

Article published on 16 February 2007