Hi all,

I was considering a deal in Brasov, Romania at the luxury end of the market. Prices come out at over £1500 per square metre (built size) Does anyone have any experience of Brasov or know anything that could help me?

The development is in an amazing location with perfect views. There does seem to be news of a lot of development in this area though and I dont want a huge mortgage with no tenant inside!

Where in Brasov? £1500 sound like a whole lot of money. I know Brasov very well.

Romanian tenants cannot afford to pay more than 200-250 Euros/month (i.e. 120-150 £/month).

Its on the eastern side of Warthe Hills overlooking the Old Town, where Ceauşescu was going to build a statue of himself. I would disagree with your comment on Romanian locals. There is a lot of money in Romania now and the reason the national average wage is so low is because 60% of the population live in rural areas. In Bucharest, wages are levelling out to 1500 euros per month in many IT based industries.

I am looking at this because it is luxury where as most development in this area will be mid range. As a niche product, Im hoping it does well.

All my family lives in Transilvania and I know what I am talking about...

I wanted to buy in the Avantgarden project in Brasov and I know lots of Real Estate agents in Brasov who said the same thing, that the rents in Brasov for a 1 bedroom apt. are less than 250 Euros/month.

Do not confuse Brasov with Bucharest, they are 170km apart. All the industry in Brasov is closing and local people in Brasov are quite poor.

But it is your business where you buy and how much you pay.

By the way, I would advise you to better buy something in Poiana Brasov, there are some projects who were supposed to start when I last checked.
Poiana Brasov is the only acceptably competitive ski resort in Romania.

A friend of mine dealt with the developer and I am confident in his ability. Are you saying Brasov is not as affluent as I think it is? I was under the impression that locals from Bucharest want to move away from the City because of its trafic, polution and crime. In your opinion as a local, can you not see luxury apartments doing well here?

Nobody can commute from Brasov to Bucharest. Not even in 10 years from now, when the highway MIGHT BE ready.

There is big pollution and crime also in Brasov, where tens of thousand of workers lost their jobs in the last 10 years. it is true that many of them now work in western Europe. It will take a long time for Brasov to have a proper industry again. So Brasov is far from being affluent.

I think Cluj Napoca is a better bet, they have the second largest university and a larger middle class.

Luxury apartments in Brasov might be attractive for tourists.

Why don't you purchase some land in Bran area and then develop a resort yourself? The building cost in Romania are around 500 Euros/m^2 for a good quality house and the land can still be had at 40 Euro/m^2.

Thanks for your comments. I will still be going for this I think; Im too lazy to buy land and develop..

The location on this is ideal and I like the sound of the luxury market with unbelievable views.

I agree that the location is very nice, I have an uncle living nearby and the view is breath taking.

If Romania becomes a genuine touristic attraciton, your investment will do well.

Good Luck!

Did you bought the property?

I agree with you when you say that the area has great potential. I live in Bucharest and is virtually impossible to find a decent place in the Brasov area when going there to spend a few days.

And things will only improve when the new highway will be ready. You mast know that there is a projetc for an airport to be build.

I’m curious about how the deal went and if you rented the property.

The prices in Romania are way overstretched. The highway is 10 year away.

There are more than enough decent places to rent in Brasov.

Why don't you buy some land and build your own house in Bran or Paraul Rece areas? You can still find land with utilities for under 50 Euros/m^2.

With all the respect, Bran-Paraul Rece is a tourist area, especially a weekend tourist area. There is not much to do there but relax and stroll through the woods, so people come there for maximum 2 days. During the week, it's kind of empty there... Our man here was looking for rental return, not just for a holiday villa. Spondgebob, are you talking about Bellvue Residences in Brasov? And by the way: the minimum rent you can ask for a studio in the centre of Brasov is 200 EUR! For the apartment you can find an expat living in Brasov as well. There are plenty foreign companies operating in the area and they need apartments for accommodating their staff. However you can also rent it by day to tourists. I suggest you address to a specialized company or person who can manage your flat.

Hi Diana,

Yes the development is Bellevue, I did not buy in the end, wish I had tho as it looks like the value is going up by the week.

Prices in Brasov area are growing indeed. After all, Brasov is one of the most important tourist destinations in Romania, plus it's very interesting for industrial and commercial purposes.
Another interesting place in Transylvania is Sibiu, it has potential and it developed spectacularly due to German money – however I would chose Brasov for investment because of it is relatively closer to Bucharest.
Another part that of interest (not from tourist point of view) is Ploiesti.