Half of new homes are acquired as investments

Investors come in during the initial stages of sales, acquiring up to 50 percent of these new projects, counting on forecast price rises, which can yield a high profit, through the resale of acquired units once the project is finalized, according to Razvan Stroescu, Manager Residential Brokerage in the Coldwell Banker Affiliates of Romania real estate consultancy company.

Those who acquired a new apartment at the beginning of 2006 registered an estimated yield of 20 percent by year-end, due to an increase in the property's value, said Karina Kraft, Marketing Manager of Neocasa, player on the Romanian real estate market.

Among buyers of new homes, 70 percent made the purchase in order to move to a new home, 15 percent to rent this out, and 6 percent to be able to sell it, according to a national survey made by the Colliers International real estate consultancy company.

Demand for medium-class apartments continues to exist, as the investment in such apartments has a higher yield in Romania, compared to countries in the region. Investments in major residential complexes in Bucharest, which will be finalized this year, exceed €500 million. The projects include 3,500-4,000 new homes, of which 80 percent will target the medium-class and 20 percent will be luxury projects, according to real estate specialists. The price of new homes will surge by 25-50 percent in the coming 3-5 years depending on location and details of the project.