Romania Invest looking for land to build wooden homes

“Norwegian Hi Cube company owns a factory in [the northern town of] Reghin. We are to buy some land where there houses can be placed. The construction cost of such a house, which can be built more rapidly than regular ones, is 40 percent lower,” Hauge added.Furthermore, Romania Invest launched the Be Igloo company yesterday, which will handle the sale of the 800 housing units currently owned by the fund. For this year, company officials hope to sell some 30-40 apartments.

Romania Invest has been operating since 2006 and has so far invested some €85 million on the local market. Its portfolio was valuated at €115 million by real estate consulting company King Sturge. Hauge said that the company has funds needed to buy more apartments if the market provides products at good prices. “The fund’s strategy is to buy some 10-40 percent of a residential project. We will make interesting moves by the end of the year,” he added.

The local real estate market is currently in a deadlock, due to the financial crisis, and prices are falling, especially on the residential segment.