Off Plan Buyers’ Profile in Romania
December 7th, 2007
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Off plan buyers are currently just 40% investors, 60% of the properties bought directly to live in.
Local investors buy usually up to 10 units, foreign buyers taking from 10 to 40 units. When contracting more units is a common thing to negotiate a discount.
After years of investments mainly in houses for upper class and land for speculation, investors are profiting from the increasing demand of middle income targeted properties. The vast majority of new projects are middle class orientated with prices at around €1000-1500 per sqm.
The top level properties market will see higher prices as well, economic growth increasing the number and the financial power of Romanian upper class. Demand will increase for very good location properties in Bucharest but also for holiday houses at mountain and on seaside. Major cities will see an increased demand for new modern residences as the local economy benefits from the new opportunities following EU integration.
IMPORTANT:
Ask for guaranties from the buyer and search constructor background. The project is safer if the developer has an agreement with a bank and doesn’t use just buyers’ deposits to finance the project.
PAYMENT:
Since 2007 is common to pay a 20%-30% deposit and clear the balance upon delivery when mortgage is possible.
A reservation fee of €2,000-5,000 can be necessary but will count in the deposit.
This payment structure gives the opportunity to leverage on price rise, 20%-40% year rate expected for next 3 years.
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