Most investors come to Romania and think 'capital city.' That makes sense and is a smart move...but not the only one. The list usually goes something like this "Bucharest, Brasov, Constanta and maybe Timisoara." Each of these markets are compelling for different and similar reasons. However, I am fond of Robert Frost's words "I went down the road less traveled, and that has made all the difference."
Following the crowd has it's advantages. You'll make money and good money in the cities mentioned above if you invest wisely. These markets however are saturated. I've lived in Romania for a long time. I was telling people to invest in the above cities way back when people looked at me like I was crazy. So now, when I tell investors to broaden their horizons past the classic Romanian cities, they look at me with the same expressions of shock and amazement.
For my money, the biggest opportunity is outside of these regions. Brasov showed 212% growth last year. It's growth again this year will be impressive and likely next year as well but I want somewhere where I can get in relatively cheap and still get the first 212% price jump. I want to maximize my investment money and get in on all the prices jumps possible, not just the ones that remain.
That's why I and Romania Report.Com have moved bases to the city of Iasi, sometimes known in English as Jassy. If you ask your average Romanian about Iasi or the Moldovian region of Romania they will tell you the same classic one-liner "impoverished, backwards, uninteresting." If you will then ask them if they have ever visited the area they will ensure you "of course not."
It almost seems as if the Moldovan region of Romania has the same reputation within Romania as Romania has had to the rest of the outside world. Ironically, that should tell you this is where you should be if you want to be ahead of the curve.
First of all, let me clarify some big lies. Moldova and Iasi in particular is similar in economic well-being to any other area of Romania and showed more economic growth then anywhere in Europe in 2006! Amazon.Com has a major development center here. Jobs exist and a sense of wealth is very prevalent in the city of Iasi.
There are two major malls that illustrate this particularly well. Carrefour has identified Iasi as an area of major expansion. Iasi may well be the cleanest and nicest city in all of Romania. It stands in stark contrast with Bucharest. The air is cleaner, the streets free of dirt or trash and all is in well repair and manicured. Something of a living museum Iasi has more churches per square meter then almost anywhere in Europe, a large palace, a theatre, and is a thriving University town. Every weekend the main road closes for almost two days transforming the nature of this the second largest city by size in Romania into something of a resort on a weekly basis.
Surrounding the city are thermal springs, painted monastaries, and rural tourism opportunities. Best of all, you can easily reach Iasi from anywhere in the world via Vienna. The rental market here is strong. There are rental agencies everywhere. You'll have no trouble getting an agent to represent your apartment here. It's one of Iasi's biggest businesses.
As a student town filled with foreign students from places like Italy and Greece, I couldn't get a hotel room when I came here in late September...they were all filled with students who couldn't find long-term accommodation. Students coming from Western Europe more then adding a cosmopolitan feel to the city have created a dynamic rental market. They have the money to pay a more than fair sum for rent. Prices are about 20% less for rent here then in Bucharest but purchase prices are significantly more low. It is almost impossible to rent an apartment here without paying 6 to 10 months in advance.
There is a real lack of luxury apartments in the city but plenty of wealthy students looking for it. Not to mention, wealthy Romanians who are home owners outside of the city but are simply bored and would like to have a flat in the city as well -- believe it or not, there are a lot of them (in fact so many of them "fitze" that they are somewhat notorious in Romania)
You would be surprised at how far your money will go here and what kind of returns are possible. I've saved the best for my full report. All you have to do is sign-up here and you'll get your copy via e-mail shortly.
The author of the article resides in Romania and publishes the Romania Report www.romaniareport.com If you seek additional information on investment opportunities described above or simply would like to find out more about the country after it's EU ascension, please visit the site
Written by
Kevin Stillmock
The author of the article resides in Romania and publishes the Romania Report www.romaniareport.com If you seek additional information on investment opportunities described above or simply would like to find out more about the country after it's EU ascension, please visit the site