Romania has been long identified as one of the countries with the greatest investment potential in the world.
A recent report, sponsored by Channel 4's A Place in the Sun program, identified the formerly communist state as the best place in the world to make money from property - basing its judgment on factors such as where house prices are undervalued and how much can be made from renting out a property.
The study claimed that prices in Romania are set to rise by 414 per cent over the coming years - fuelled by accession to the EU and a well-educated and upwardly mobile younger generation. Despite this properties can still be bought for very cheap prices - as low as £5,000 recently.
Analysts believe that Romania is set for future growth as it benefits from an education system that surpasses that found in any other eastern European country. This, allied with the fact that it is one of the most populous nations in the region with around 21 million consumers contained within its borders, means that multinational companies should soon move in.
Indeed, the accession of Romania to the EU has already resulted in some large corporate investment in sectors such as manufacturing and retail - with ongoing political and social reforms set to bolster wealth further.
The best investments are currently to be found in the higher end residential property market of Bucharest.
In terms of opportunities Bucharest offers the property investor two angles to target. An investor could consider either prime residential property in the best city locations or new suburbs popping up near the new ring road.
Property investment opportunities are diverse in Romania and the potential for capital appreciation is huge. The Romanian property market is a genuine emerging property market built on very solid foundations and currently enjoying a huge level of foreign investor interest. Romania offers real long term gains and high yields.
Romania’s accession took place in January 2007 and is predicted to set off a gold rush like never before. EU development funds are coming into the country and there will be a huge reactionary jump in house prices as a result with predictions of a 30% rise in 2007.
Romania tops the table when it comes to growth in the emerging markets of Europe. 2004 saw GDP growth of 8.5%, 2005 was 6% and 2007 was 7.7% (CIA Factbook). The EU average is approximately 2.2%.
Romania's year-round attractions include Europe's cheapest skiing, hiking, churches, stunning countryside and wildlife are attracting tourists to the country, while a growing EU based economy has made it top A Place n the Sun's 2006 list of European investments.