Planorama city apartments to target Bucharest property middle classes
In the study which formed the basis for Channel 4’s 20 best places to make money, Romania ranked as the top property investment country in Europe over the next ten years, offering over 400% return on investment translating to a very healthy 17.8% return annually. In mid-October 2006, Knight Frank produced their European Residential Markets report forecasting upward capital growth in overseas property hot spots in 2007 and which reported that Romania was likely to become a strong property investment hotspot contender for 2007, being one of eight European countries forecast for 12.5 per cent capital value growth in 2007. Knight Frank predicted significant further capital growth in these emerging markets where demand keeps pace or outstrips supply.
Prior to accession investor interest in property in Romania remained high as many hoped to match the sizeable price gains achieved by those with the foresight to invest into the real estate sectors of earlier entrants Czech Republic and Hungary. With EU membership confirmation on January 1st, Romania must continue to attract foreign direct investment and build tourism, sectors both connected to the sustainability of mature real estate markets and to ensure long term prospects for economic growth. A positive side effect of joining the European Union will be that the process of buying Romanian property will become more straightforward as the rules relating to foreign freehold ownership of land and property align with EU regulations and should lead the way for opening up of the market for financial products.
As with most Eastern European property newcomers, much of property investor focus in concentrated primarily on city centre commercial and residential real estate, often as the result of FDI to establish company operational headquarters attracted by Romania’s establishment of a flat rate tax regime of 16% to further improve an already low cost business environment. Ziarul Financiar, revealed in a study conducted by real estate consulting company DTZ Echinox that Bucharest is the cheapest city in Europe in terms of office expenses per employee taking into account rent and other expenses, such as upkeep and property taxes. The business hub of Romania, property in Bucharest remains in strong demand both from a local and international perspective. According to Bank Austria Creditanstalt, at more than 4.0 bn Euros, Romania has taken over as the leading beneficiary of inward investment garnering 18% of the CEE region investment.
Over the past 3 years, foreign direct investment into Romania has grown significantly with large corporate entities such as General Electric, Ikea and Toyota establishing a Romanian presence demonstrating confidence in Romania’s future prospects for long term growth.
Aimed squarely at the need for quality middle class residential housing, Planorama is a state-of-the-art city centre development of luxury apartments starting from just 52,000€. Located in the Doamna Ghica area of the city centre, Planorama sits on the corner of “Heliade intre VII”. Covering some 18.000 sqm, the Planorama development comprises four buildings of 15 floors each with approximately 1104 well-proportioned apartments of 1, 2, and 3 rooms. Each building enjoys a central piazza, and is surrounded by manicured gardens set in parkland with safe pedestrian zoned walkways. In addition to the onsite country club and fitness centre facilities available to residents, ground level areas designed as commercial space will only serve to improve the availability of local amenities.
The entire Planorama site will have 24 hour guarded security and each building will be accessed by a well-appointed hotel-style lobby entrance which also serves as a central point for onsite management of apartments.
Planorama is being developed by one of Europe’s largest building companies whose portfolio of projects ranges from commercial to residential interests worldwide at a cost of over 70 million euros. Within the first 3 days of launch almost 10% of the apartments in Planorama were reserved demonstrating the high level of interest in this project. The project is set to complete in 2008.
The Right Move Abroad have been designated as marketing agents for the Planorama development, for further details on units currently available to purchase in Planorama click here.
