News on Romania
12 February 2008
The Adal Residence has been launched in the booming Romanian property market of Brasov.
Construction on the first phase got under way in October 2007 with completion planned for between October 2008 and March 2009. It will include 264 residential units, with off-plan prices currently starting from €81,000. The development, which will be built in three phases, will eventually consist of over 800 homes. Properties are available through Romanian Properties Ltd.
Located in the central eastern part of Romania in the Transylvania region, 106 miles from Bucharest. Brasov, which has a population of around 350,000, is Romania’s third largest city and a popular summer and winter holiday destination.
The development will be situated in the north of the city, which is currently being regenerated. Infrastructural improvements include the on-going construction of a new ring road, which will cut the journey time into the city centre, along with a motorway. There are also advanced plans to build an international airport in the area.
Speaking to Homes Overseas on-line, Damien Thierry of Romanian Properties Ltd, said: “Although properties will be primarily aimed at locals, we are expecting some foreign interest. There is particularly strong investor demand from Britain and Ireland at the moment. We anticipate that properties in Adal Residence will yield a rental return of around 6%, while property prices are appreciating annually by between 20 and 25%.”
The fact that the majority of this new development will be aimed at local residents, rather than solely at foreign holiday homebuyers and investors, should ensure that there is less property investor competition. This ought to provide investors with a higher rental yield and an easier exit strategy when selling their property in the future. It’s worth noting that foreign nationals can obtain a mortgage of up to 85% loan-to-value on the purchase price, available upon completion of the development.