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Mogosoaia is a district within the greater Bucharest area containing one of Bucharest's most famous tourist attractions, Mogosoaia Palace. The surrounding area has seen a significant amount of regeneration as Bucharest expands to meet the growing housing demand.

 

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What’s happening to the Romanian real estate market?

Let’s start with recent developments.Compared with the sharp decline in other European countries, the demand for housing is still booming, particularly in the large cities.While this was no surprise for Bucharest, others, such as Cluj and Ploiesti, will see a sustained increase in the near future due to international companies relocating some of their production lines to Romania. Cluj was already chosen by Nokia, who is rapidly setting up a strong production division nearby the city, and Ploiesti has been already favoured by an increasing number of large companies due to its closeness to Bucharest (about 40 miles) and the relatively lower price tag for land in the area. Next, the banks – currently the Romanian National Bank is slowly trying to impose stricter loan regulations in order to avoid banks encouraging high-risk buyers to go ahead and invest. While this seems like an aggressive measure, which may slightly discourage the market, it is actually beneficial on the long term as it is one of the steps towards avoiding house market crashes. As expected, at the other end, the number of houses or apartments offered is increasing and.so, after revealing all these details, what does the big picture look like?
The market seems stable for new developments – as none of the newly built flats has developed any flaws/structural problems and they are seen as a good investment. The restrictions imposed by the banks have done little to discourage the buyers – one of the very few benefits of the traditional bureaucratic systems in Romania is the excessive precaution of the banks in giving out loans, hence the newly imposed restrictions affected strongly the loan sharks of the market and only mildly influenced the banks.