Technical Description for Investing in Bucharest (Rumanía)

About the country

Surface:	238.391 km2 (4,8% of the European territory)
Capital City:	Bucharest
Number of Inhabitants:	23 million (Bucharest aproximately 3 million)
Average Temperatures:	Winter: -16ºC to 2ºC; Summer: 16ºC to 29ºC
Government type:	Bicameral Parliamentary Republic
Religion:	Orthodoxes (87%), Catholics (5%), Protestants (5%)
Official Language:	Romanian; at work, English, German and French

About the economy

Age:	Under 14 years: 15,6%; 15-64 years: 69,6%; 65 years or more: 14,7% (2007)
Growth of the GDP:	6%
Annual Inflation:	4%
Public Deficit:	13% of the GDP
Tourism:	7,72 million in 2007, an increase of 28% respecting to 2006; the majority provenient from the European Union
Official Currency:	Romanian Leu (RON); €1 = 3,5 RON
Unemployment:	4,1%
Average Salary:	€500 per month (Romania), € 700 per month (Bucharest)

Property Factor

There has been a very strong increase during the last years, in the number of investors and in the value of real estate transactions.The housing trade market is still new, with an enormous growth potential. The prices of the houses in 2007 increased by 40% due to the housing shortage.

Economic Factor

In addition to the strong economic growth of these years the figures are also very positive. In 2007 GDP grew 6%, which was the fourth highest increase in the EU. Due to the great need for a labour force, the unemployment rate was only 6,3% in 2007, and currently is 4,1%inflation the average for the EU is 3,1%, but went down each year to reach 4,3% in 2007.

Financial Factor

There has been remarkable expansion in the mortgage area. The Romanian banking area is one of the greatest receivers of foreign funds. In 2006 the country had the biggest mortgage growth among all the Central and East European countries due to the market liberation, the opening of the mortgage market to foreign investors, the growing confidence in the population in the banking area and the progressive drop in the rates of interest. For foreigners, 85% of the value of the house can be financed through mortgages, reaching 100% for residents.

Risk Factor

Romania has a free market economy where there is freedom of funds movement, tax and monetary freedom, property rights and work liberty. The economy of the country has a great stability, as well as the funds markets as it is supported by the EU. The foreign investors can take part in the trade market with absolute freedom and safety, as there is legal security and support for these investments.

Demographic Factor

With 23 million inhabitants is the second biggest market among the Central and East European countries after Poland. In addition, the upper and universitary educated have grown 41,7% between 1992 and 2002. Only 55,2% of Romanians live in the cities because of the great housing shortfall which creates big development potential in the real estate and construction area.

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