Romania seeing real estate boom
Romanian real estate transactions soared by 150% in 2007 compared to the previous year, making the country the most booming property market in the Balkans.
Romania's real estate business was worth more than €2 billion last year, with the most significant transactions involving the sale of office space in Bucharest and the country's cities, local news agency Mediafax reported.
Analysts say the Romanian real estate market will continue to sustain its upward trend, at least in the short term.
“Romania’s mortgage market could double reaching €8 billion by 2009,” says Ana Cernat, the mortgage loans division manager at the country's Bancpost bank.
But even if that happens, mortgage loans in Romania will still be very low in relation to the country's Gross Domestic Product, especially in comparison to most western European countries, Cernat added.
Mortgage loans stood at 3.4% of the GDP at the end of November 2007.