The potential of properties for sale Romania market may have gone unnoticed by UK investors but its progress since 2000 guarantees that this won’t be for much longer, comments Property Secrets CEO Neil Lewis.

Whilst its neighbours Hungary, and notably Bulgaria, have received attention from press and investors alike, Romania has been making economic and political reforms which have paved the way for its entry into the EU. The results have been impressive.

“The effects of Romania’s reforms have been remarkable. The National Bank of Romania recently announced that in 2006, GDP has increased impressively from 6.9% to 7.8% in Q1 and Q2 respectively, whilst unemployment rests at just above 5%.

“A key economic pointer for potential investors should also be the levels of FDI entering Romania, with previous experience highlighting that instead of dropping after EU accession, it in fact increases substantially following membership. Ultimately, this will significantly drive demand for property”.

To date, a barrier to foreign investment in Romania has been the lack of competitive mortgage finance which naturally deterred many investors. Whilst Romania’s current law on borrowing is strict and lending of more that 75% LTV is illegal over 20 years, Lewis believes this will not always be the case.