Investment Property - Corona

Original Investment Summary - 24/09/2007 Investment Property Corona

Excellent price – average price per sqm of €965/£661
Very low entry price of €74,894/£51,297
Property Secrets has obtained a 5% discount from the developer
Independent valuation has valued units 16% below market value
Exclusive units not yet available on the market at pre-launch prices

Corona offers investors a fantastic opportunity to gain entry to Romania’s second city at exceptionally low prices. With an entry price of €74,894/£51,297 and average price per sqm of €965/£661, this is one of the best prices currently available in Romania. We have received a 5% discount (worth on average €5,304 per unit) from the developer and our independent valuation has valued the units at 16% below market value.

Units in Corona have not yet been launched on the market but there is already proven demand. Prices at the neighbouring development of AvantGarden are 19% higher than Corona, yet 70% of the units have already been sold. The developer at Corona is also expected to increase prices of units in the next stage of this phase in the development in four months time by 10%.

Brasov is experiencing current house price growth of 25% per annum however some areas are seeing increases of up to 40%. There is huge demand for new build residential developments in the city. Our previous investment opportunity in Brasov, Tampa Gardens, has sold out its 256 unit development. Phase 1 of our first development in the city, Bellvue Residence has also sold out with Phase 2 prices expected to increase by 35%.

One of the key features of this deal is the fantastic price we have secured from the developer. We have managed to negotiate a 5% discount. Prices in the neighbouring residential development, AvantGarden, are up to 19% more expensive and the verdict of our independent valuation report is that units in Corona are 6% below market value.

Corona will be located to the north of the city centre in the district of Bartolomeu, just 2km from the city centre. Access to the city centre is excellent with good road and public transport connections. Bartolomeu is now emerging as a popular new residential area in the city. Corona is situated adjacent to the AvantGarden development. This project has 320 apartments where 70% have already been sold, an indication of the growing popularity of this residential district. Transport links will also improve as more people locate to this area of the city.

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