Investing abroad can be a daunting step for many property investors, and for good reason.
For most, despite having invested in several UK-based projects before, investing overseas can bring several risks and challenges that most of us could do without. However, doing so also has massive pay-offs, including high returns and involvement in large development projects that they may not have had access to here at home.
Romania is a great example of investing for success abroad. Not necessarily an investors’ first thought, the country has a strategic position in Europe, which many foreign investors are attracted to. With its excellent transport systems and ITC infrastructure, its value chains, industry clusters and centres of excellence, investors and tourists alike will find stability in the country’s international commercial contracts.
Last year, the Romanian real estate market saw some big transactions, with the office space segment housing the sturdiest deals. With workspace comes a need for home space, and this need will require intensive property investment throughout 2019 and beyond.
According to Silviu Pop, head of Research at Colliers International Romania – “Romania’s potential (or sustainable) economic growth is currently at around 4% of the EU average, below 2%, or around 3% for the countries of the region, according to the European Commission. These figures can provide a reason for optimism for Romania’s long-term economy, especially given the significant potential that can be unlocked through relatively simple reforms, such as improving infrastructure. This context will also favour the good development of the real estate sector in the long run.”
Romania has been “recommended for investment” by S&P, Moody’s and Fitch – the three major international rating agencies. Despite not being an initially obvious choice, Romania as an investment hub is growing.
At current, property build products in Romania can offer an income of 1% per month on your capital over two years. Find out more here.