- Joining the EU should give Romania – a country recognised as one of the poorest in Europe – a much-needed boost. Its Black Sea coast, budding ski resorts and lively capital are fighting to draw the attention of overseas speculators and turn Romania into an investment hotspot.

Prices for Romania properties from £25,000

The Market: Tempting Transylvania
In line to join the EU next year, Romania is eager to cast off its label of being one of the poorest nations in Europe and crying to get in on the property investment action. The property market has been growing at a bullish rate for three years now (an estimated 25 per cent p.a.), fuelled by speculators waiting for healthy capital returns once the country amends its property-buying laws, becomes a free market and receives more than €11 billion in EU funding. It’s not possible – yet – to purchase there with a UK or Romanian mortgage so most people are cash buyers targeting apartments in Bucharest – which start at around £50,000 – or ski and coastal resorts.

As Bucharest grows, particularly in the south, new areas are expected to attract more foreign money. Away from the capital is Transylvania, Romania’s greatest tourist asset and famous for being the home of the legendary Count Dracula. Fascinating folklore aside, the area has year-round appeal: skiing in winter, hiking and outdoor pursuits in summer, medieval towns and interesting wildlife, including a resident wolf and bear population. The main towns here are the cultural highlights of Brasov and Sighisoara, the former being close to Romania’s largest ski resort, Poiana Brasov and the Prahova Valley in the Carpathian mountains. An airport is scheduled to open in Brasov in 2008 and a new motorway joining it with Bucharest is also planned, both good signs for the future.

Other mountain resorts include Predeal, Sinaia and Busteni. Villas in need of improvement can be bought for as little as £50,000; a rural cottage with poor facilities for just £15,000-£20,000. Looking to the Black Sea coast, the port of Constanta with its large beach is the site of new developments. Two other resorts offering bargain property are Mamaia and Costinesti, where prices for a brand new studio apartment in the latter start at £30,000 and deliver an 8-10 per cent return on five months’ let a year. As a whole the Black Sea coast is still largely untapped.