Romania, along with Bulgaria, acceded to the EU on 1 January 2007. The country's joining looks set to introduce this Eastern European nation, with a colourful history, to many Britons searching for the next property hotspot.
Romania lies in Central Eastern Europe bordered by Bulgaria, Hungary, Ukraine, Serbia and Moldova. A largely beautiful country that remains predominantly agricultural, it has a Black Sea coastline with several reasonably attractive resorts, including Mamaia, the port city of Constanta, and the dark and moody Transylvanian Mountains. Nestling there are the pretty Saxon medieval towns of Brasov and Sighisoara- the birthplace of Vlad the Impaler, on whom it is said the legend of Dracula is based.
A former Communist state, ruled over by the dictator Ceausescu until he was violently deposed in 1989, Romania is one of the poorest nations in Europe. Ceausescu's legacy was a bankrupt country that has had to play catch up with its wealthy Western neighbours. For much of the decade following his departure high inflation was rampant, but since 2000 the country has stabilised and has begun to demonstrate a strong economic performance. Its GDP has averaged a stable 5.4% over the last five years (the EU 2006 average was 3.0%).
The upshot of a tumultuous couple of decades is a country that joined the EU at the beginning of the year. Its joining will bring further growth as EU subsidies kick in and its economy will transform to a fully free market one, with resulting upward pressure on property prices caused by greater demand from foreign investors and house buyers. Presently, property remains cheap by Western standards, but prices are rising rapidly as many new apartment blocks begin to be completed and released into the marketplace. In Bucharest, the capital, new studios start at around £40,000, rising to £300,000 plus. Elsewhere, prices for a new-build range from £45,000 to £150,000; a modest, rural three bedroom house can be picked up for around £25,000.
Bucharest has a cosmopolitan population and eclectic architecture with strong French influences, which earned the city its nickname "little Paris" during the 19th century. Sure, there are plenty of Soviet-era concrete tower blocks, but surprisingly many of the classical older buildings survive. Perhaps equally unexpectedly, Bucharest has a large and growing middle class that is becoming ever more affluent as the city welcomes foreign business to its shores.
"Bucharest is a booming city with a highly educated and motivated workforce running a host of the world's top companies that have set up there," says Michael Johns of agents The Right Move Abroad. "Since 2004, companies such as Goldman Sachs, BMW, Boeing, Bosch, BP, Deutsche Bank, Ericsson, Hewlett Packard, Shell, Sony, Tesco, Walmart and Unilever have all opened operations in the city."
The future for Bucharest, and Romania in general, looks a bright one. British buyers looking for an affordable second home or an investment opportunity will have to be quick off the mark. The secret is out on one of Europe's newest hotspots.
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