REAL ESTATE - December 11th 2004
Buying plots of land is to stay one of the most profitable investments, albeit land in the vicinity of urban or development areas.
By DANIELA IVAN
PROFITABLE. Investments in real-estate property may triple their value in the future |
The price of plots of land for urban development went up some 35% in 2004: closer to that figure in big cities and mountain resorts, and lower in poorer areas, like small cities or villages in the plains, according to information delivered by Liviu Ureche, the president of the Romanian Association of Real-Estate Agencies.
There are also plots of land which had their price doubled, in the same period of time. This happened with the plots outside city limits which later were turned by a strike of pen in plots inside city limits. All around Bucharest there are such large plots of land which have been bought by people in the know. _I am referring to plots less than 5 kilometers away from Bucharest city limit. But also a good deal is to be made for plots under 25 kilometers away from Bucharest,_ said Ureche.
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In 2005 we will experience large investments in hotels and villas on the Olt River Valley,_ Ureche also said. He pointed out that large scale investors seek for purchase plots of land in all the resorts in the area: Olanesti, Govora, Calimanesti-Caciulata, Cozia and Voineasa.
Analysts of the real-estate market expect the market to freeze at current levels next year. Some buy land only to re-sell it at a profit, but in order to do that one needs to look carefully into the Urban Development Plan and find out how tall the buildings may be erected there. The rule of thumb is to carefully play on that, analysts say.
Translation: ANCA PADURARU