Before the communist regime, Romania’s economy and real estate market was similar to other European countries’. Bucharest was even called “the little Paris” because of the architectural similitude. During the next decades most privately owned houses in cities were demolished and the population was forced to live in block apartments. These apartments were small, bad finished and were offering poor living conditions. In late 90′s the state owned all the apartments. A political decision allowed tenants to buy the apartments for small prices. Nowadays 90% of the residential properties in Romania are owned by their inhabitants. After 1990 many Romanians tried to regain the properties confiscated from them or their relatives. The restitution was not well regarded by political regimes in late 90′s so the process was long and many owners had to fight in court for their rights.

The good news is that today housing situation in Romania is not good. Romanian society has seen some radical structural transformations, with many political, psychological and economical changes. There is a great need for new houses and economical growth in late years has provided the means to satisfy such needs. So everything is set to profit from Romanian real estate market. Most part of the urban population is living in old communist apartments especially because there is no real alternative.

Looking on Bucharest streets 5-6 years ago you would saw many old, improper cars. Today streets are full with new, modern cars, auto industry and auto trading being one of the most profitable economical sectors in the country. The same will happen with the real estate. Of course, there are differences between real estate market and the auto market, but the psychological and economical factors that will bring the change are the very same: people don’t like their old communist houses and they have increasing access to economical resources. With many foreign investments and increasing productivity, income in Romania is on a very positive trend. EU integration has brought the opportunity for millions of people to work abroad. These people are sending 6 billion euro annually and most of the money are invested in real estate properties.

Romania is on the brink of something very big as far as real estate investment in the country is concerned. The country was under the grip of repressive dictatorial regime until 1990 when Ceaucescu was overthrown, and it is only in the last decade-and-a-half that Romania has realised its economic and political potential in the real sense. Resultantly, the opportunities for commercial, business, industrial, and residential property investment are literally served on the platter for visionary real estate investors. Contrary to the popular belief, foreign residents can also own property in Romania, if they know their exact legal position.

Romania is one of the newest members of the European Union (EU), which, in itself, marks, the beginning of a long transformation process for the country. The country has to eliminate legal and administrative hassles for investment purposes. This means that Romania has to forego many of its prohibitive stipulations, like the bar on foreign investors to purchase property in the country as an individual. However, there will be no bar if a foreigner forms a Limited Liability Company and invests in Romanian real estate.

Romania has had some interesting historical significance in Europe. It is the largest Balkan State and is popularly known as ‘an Island of Latinos in a sea of Slavs’. Romania was ruled by Romans, Ottomans, and Austro-Hungarians at different points in history. Resultantly, there is a treasure-trove of cultural and historical remnants spread all across the country, which is a natural tourist attraction. The Saxon town of Transylvania is popular for the Bran Castle of Dracula fame. The painted monasteries of Bucovina and the rural village idyll of Muramures are everyone’s delight. Paris of Balkans – the capital city of Bucharest – is by no means a dull city. It is as vibrant as any other European capital. However, the pride of place in Romania is 2007′s European Capital of Culture – the old city of Sibiu in Transylvania.

The Mountain resorts of Predeal, Sinaia and Busteni present an excellent opportunity for buying villas in the range of £50K. The beach resort towns of Mamaia and Costinesti are best for buying studio apartments for regular handsome rental income throughout the year. The rates of studio apartments start at £30K. The time is perfect for Romanian real estate investment, as the market is on a maturing stage and if you are a long-term investor, there is nothing like Romanian property. If the projected returns on investments on Romanian property in the next few years are any indication, we are bound to witness a surge of investment activity throughout the country.