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5th May 2007

Immoeast far ahead in the top real estate investors

The company that ranks on the first place in the domestic real estate market is by far Immoeast, according to the top biggest real estate investors in Romania, subject to the rental surfaces, according to HotNews.ro. The Austrians managed to acquire, since 2004, the year when they tapped the market, properties whose rental surface reaches 3.3 million square meters. The over 100 properties held by Immoeast in Romania are chiefly in Bucharest, but the company holds important projects also in Timisoara, Brasov, Constanta, Cluj, Sibiu, Targu Mures and Galati.

“The total volume of Immoeast investments in Romania is EUR 2.2 bln (the contractual investments included). The revenues of the company in Romania reached EUR 15.3 M in the first nine months of 2006-2007 financial year. Considering our development plans, these figures will rise considerably in the next period,” announced Karl Petrikovics, Immoeast AG representative.

Together with the firm S+B CEE, from which Immoeast holds 50 per cent, the Austrians will build two commercial centers in Sibiu and Targu Mures. The mall in Sibiu has a surface of 29,250 sq m and the one from Targu Mures 17,000 sq m. Both projects will be opened in 2009.

The company has also concluded a partnership with a German developer, which stipulates the construction of a mall with a rental space of 38,000 sq m, outside Bucharest. The land for Glina Specialty Shopping Center was purchased, and Immoeast holds 90 per cent of the shares. These are only two of the main transactions of the past year, the company is running 19 projects in different stages of construction in Bucharest and around the country.
Source: Nine O'Clock

Number of foreign tourists in Romania on the rise

In Q1, the number of foreign tourists visiting Romania went up 9 per cent to 256,000 persons, against last year’s similar period, announced on Thursday the National Statistics Institute (INS).

Arrivals into tourist facilities in the first three months amounted to 1.21 million persons, up 9.7 per cent compared to first-quarter arrivals in 2006. Around 955,000 of these were Romanian tourists, up 9.9 per cent, and 256,000 were foreign tourists, 9 per cent more than in the first quarter last year. Significant increases were recorded in the number of check-ins at tourist facilities providing accommodation: youth hotels (+99.4 per cent), hotels (+52.9 per cent), rural tourist lodgings (+42.2 per cent) and inns (+40.9 per cent). A decrease compared to Q1 2006 was recorded in camping grounds (-17.5 per cent), tourist villas (-16.4 per cent).

Bucharest and the other county municipalities minus Tulcea, with a 47.4 per cent quota of all check-ins in tourist facilities providing accommodation, occupied first place in the first quarter, in a ranking concerning Romanian tourist areas. Next were spas, with 21.6 per cent, and mountain resorts, with a 16.3 per cent out of the total figure.

In the first trimester of 2007, the net usage index for accommodation capacity was 26.3 per cent out of total tourist facilities, up 0.2 per cent compared to the first trimester of 2006. The arrivals of foreign visitors to Romania, as recorded at border crossings, amounted to 1.7 million persons in the first three months, up 10.5 per cent against the first quarter of 2006. Most foreign visitors originate from European countries (94.5 per cent).
Source: Nine O'Clock

Romania needs some 30 years to attain EU's average development level

Romania needs some 25-30 years to attain the EU's average development level, something that is feasible only if productivity reaches the European level, the former Romanian Prime Minister Theodor Stolojan said on Thursday.

"The post-accession period will be finalized in some 25-30 years, when Romania reaches the average development level of the European Union, but this is feasible only if productivity grows fast," Stolojan said during a seminar of productivity and competitiveness in Romania.

Romania's productivity, related to GDP per capita, is 35-36 percent of the EU level and 42.7 percent for employees alone, he added.

"Romania cannot attain a high productivity level if it maintains the economic sectors that were an obstacle for the competitiveness and productivity during the transition period," said Stolojan.

The former premier also stressed that Romania's productivity is affected by an education system unrelated to real economic needs, by the lack of massive investment in technology and by some insufficiently developed sectors that cause drops in productivity, such as infrastructure and agriculture.

"The bureaucracy in the Public Administration causes high expenses to companies. If we do not win the battle for the productivity, the post-accession will last longer and we will not reduce the gaps between us and the European Union," he said.

According to the provisions in the National Development Plan, Romania should attain a productivity level of 55 percent of the EU average by 2015 with an annual scheduled growth of 5.5 percent.
Source: Xinhua

North East firms urged to focus on Romania

North East (UK) firms seeking to break into new markets are being urged to focus on Romania as UK Trade & Investment hosts a special breakfast event to highlight opportunities in the Eastern European country.

Romania was among the latest countries to join the European Union, in January this year. It has enjoyed a healthy and sustained economic growth in recent years while UK exports to Romania tripled from Euros 210m in 1996 to Euros 607m in 2004.

The Focus Romania event - to be held at Newcastle United Football Club, St James' Park, Scottish & Newcastle Triple Box on Thursday 10 May, 8.30-10.30am - will offer an overview of the Romanian market and how to do business successfully in Romania.

The event has been organised by UK Trade & Investment in partnership with One NorthEast, the North East Chamber of Commerce, Euro Info Centre, Regional Language Network and the North East Assembly.

Speakers at the event will include Ion Cernivvean, Head of Trade Section at the Embassy of Romania in London.

Three of UK Trade & Investment's commercial officers from the British Embassy in Romania's capital Bucharest will also be on hand to offer advice to companies, including Valentin Dima, Trade Development Officer, who will give a presentation entitled: "Romania, Open for Business".

Judith McGovern, one of UK Trade & Investment's International Trade Advisers, explained:

"Up until 2000 Romania had been considered one of the poorest performing economies of central and Eastern Europe, but is now enjoying steady economic growth while poverty levels have fallen from 36 per cent in 2000 to 18 per cent in 2005.

"It boasts a population of more than 22 million people and UK exports to Romania have tripled in recent years. Opportunities now exist for UK businesses that would have been unthinkable 15 years ago.

"Channel 4's 'A Place in the Sun' programme named Romania one of its top five places to invest in property over the next decade and almost 2,000 British companies are already registered in Romania, including Vodafone and Marks & Spencer.

"There's a wide range of opportunities for companies to do business in many different sectors, including agriculture, aerospace, automotive, clothing and fashion, education, engineering, food and drink, healthcare, legal and financial services and the oil and gas industry.

"And our Focus Romania event provides the ideal opportunity for companies wanting to find out more to talk to the experts in this market."

The event is free but places must be booked in advance. To register your interest or to find out more about the range of support services available through UK Trade & Investment to help your company succeed overseas call the North East International Trade Hotline on 0845 05 05 054 or email: enquiries@ukti.rito.co.uk.
Source: Newswire

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