PROPERTY INVESTMENTS IN ROMANIA

There are two kinds of property investments in Romania.

The proper income fetching investments, e.g. buildings rented with good income, and the speculative investments especially those purchased before the world economic crisis of 2012.

The last category of investments includes the lands purchased in good suburban areas where demand started to improve with corresponding repercussions on the prices. The worst part of speculative investments include lands purchased for construction in remote areas where now the only demand is for agricultural purposes at prices which may be 25% of the purchase cost.

Some investors decide and sell at these low prices for agriculture but some they don’t decide to sell at prices below their costs. In this respect there is no possibility of selling without loss in the foreseeable future. The solution to this problem is to sell at the low prices but invest the money to some income fetching properties in good areas of Bucharest. In this way the loss is not ‘realised’ because the investment will continue in good terms regarding return and capital appreciation.

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