GENERAL ECONOMICS
A review of last year’s economics indicate an encouraging situation whereby the Romanian Economy is stabilizing with prospects of recovery during the current year. This is expected to be more evident in 2013.
Last year Romania’s strong performance in industrial production and exports, helped the country to recover its GDP.
Unemployment last year remained without change, and this year a slight decrease is expected whereas wages showed a slight rise last year and the same is expected in 2012.
Inflation rate showed a downward trend in 2011 and the same forecast is for the current year.
RENTAL INCOMES
Rents remained stable during 2010 and 2011 although in several cases tenants negotiated and received some allowances, such as free rental for some period.
PROPERTY MARKET
The housing market was restricted in small apartments in new projects and also in apartments of the communist regime, taking benefit of the ‘Prima Casa’ (first house) scheme.
It is true that there is a substantial shortage of housing, especially in the area of the Capital, where it is envisaged that in a period of 10 years the population may be doubled from the existing 2.2 million people.
So our forecast, based on the above, is that in the near future, bigger apartments will be sought, and the market for villas in the periphery of Bucharest will start moving, with the developers moving in.
We noticed a movement in rented properties especially in offices, where the investors have income from the moment of purchase.

 

ANDREAS KAKOFENGITIS is Chief Executive of Bestservus Group, a qualified accountant and banker with long experience in the financial sector in Cyprus, England and Romania. He is also a humorous guy with a lot of stories to share.
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