According to independent reports from Romania, developers in the country are anticipating price rises this Autumn on new build projects. As has been the case for Romanian property investment, demand continues to outweight supply, with most demand seen in and around urban areas.
Indeed, such is the confidence in the new build and off-plan property market within Romania, that prices are expected to rise by 10% across the board.
Confidence is high that price increases in the country are sustainable for the foreseeable future, as the country continues to grow, with the latest report from Government bodies upgrading the economic forecast growth to 9.1% over the 2008 period.
The main driving force behind the continued growth of prices in new build properties is the country´s current stock of housing, which is old and undesirable. New build properties offer more space and a modern build quality which is simply lacking in the old communist style housing blocks.
Increasing incomes and the extremely low level of mortgage lending within the country are among the major factors in the continued growth of property prices in and around the capital. Indeed, Romania has the lowest level of mortgage lending in Europe with a level of 3.6% of GDP, compared to the UK level of 83% of GDP.
