• 8% off the developer’s list price. An average discount of €12,716 (£9,490)
• 11% below market value according to an independent valuation by SHM Smith Hodgkinson
• Estimated 53% annualised average price growth across our six previous deals in Bucharest
• A rapidly changing mortgage market with up to 85% LTV now available from Volksbank (subject to status)
• A landmark development featuring the tallest tower in Bucharest in an area being transformed into a modern urban oasis

Romania is one of the best investment markets in Central and Eastern Europe right now and its capital Bucharest has been the number one destination for those seeking high capital growth. Average annualised price growth across our previous six deals in Romania has been an estimated 53% in the second half of 2007.

Romfelt Plaza is located in an area of massive regeneration in the Colentina quarter of Bucharest, just five kilometres north east of the historic centre. This area is currently one of the hottest districts of the city with developers moving in to satisfy huge demand for property on the local market.

A number of multi-tower projects are at the planning stage with demand high for quality new-build apartments in the area. One multi-tower residential project with buildings reaching 25 storeys by developers, less than two kilometres from Romfelt Plaza, has already netted the developers Neocity Group a €10.5 million profit from their investment.

An 8% discount on the developer’s list price for Romfelt Plaza has been negotiated for Property Secrets’ clients. The average price is €1,196/sqm (£893), this is significantly less than all the nearest comparables priced at an average €1,517/sqm (£1,132).

An independent valuation carried out by Smith Hodgkinson has valued the units at Romfelt Plaza at an average €1,350/sqm (£1,007). This places the units secured by Property Secrets a full 11% below market value with property price growth in this district of Bucharest estimated to rise by 25% per annum for the next two years. This is a conservative estimate and growth could well exceed this figure.

When it reaches completion, Romfelt Plaza will be one of the major landmark residential developments in Bucharest, built by the leading construction company in Romania.

The residential complex will feature nine buildings containing 512 apartments in total. The tallest of the five towers will be 24 floors high and the tallest building in Bucharest.

The population of Bucharest is 2.3 million according to official estimates, but the true figure could be anything up to three million. The market in Romania is currently seeing dynamic changes with high demand for middle class housing. New projects reaching completion from 2007 have been designed for the needs of the emerging middle class population. 100,000 of the population in Bucharest belonging to this market niche are able to afford apartments over €130,000 and with just 2,500 units reaching completion last year, there is still some way to go to meet a target of 25,000 in the next four years.

With a long completion time of an estimated 20 months, investors can take full advantage of an expected 25% growth per annum anticipated over the next two years at Romfelt Plaza with an initial down payment of 25%.

The mortgage market in Romania is changing rapidly and this is one of the key drivers of the high growth we are seeing.

As better mortgage packaqges become available people are more likely to look at new affordable property as an increasingly attractive alternative to old communist era panelaks.

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