Peter Hemple gives an update on the residential property market in Romania and wonders how property prices can continue to rise when mortgage rates are at 12%.

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Romania best place to invest in Southeast Europe says Ernst & Young.

According to the Ernst & Young Southeast Europe Attractiveness Survey 2008, Romania continues to be the most attractive destination for Southeast Europe (SEE).

Ernst & Young started the annual survey in 2007, looking at Romania, Bulgaria, Greece, Serbia, Turkey, Cyprus and Moldova. This year’s survey also included Bosnia and Herzegovina. The survey tracks the actual investment project announcements in Europe, recorded in the Ernst & Young European Investment Monitor database.

Of the respondents to the survey, 52% consider Romania as an attractive country to do business in, compared with 50% for Turkey, 40% for Bulgaria, 31% for Greece, 28% for Croatia, 19% for Serbia, 10% for Bosnia & Herzegovina and 9% for Cyprus.

Almost two thirds of respondents (67%) said their perceptions of Southeast Europe investment environment has improved over the last three years, but there was a strong gap between perception and reality, with the resident SEE investors having a better perception than potential investors.

Respondents indicated that Southeast Europe is a favoured destination for investment in manufacturing activities (38%), and services/head offices (25%).

Companies included in the survey came from different world regions: Western Europe (62%), North America (17%), Southeast Europe (9%), Asia (5%), Central and Eastern Europe (4%), and other (3%). Of the total 216 respondents, half are based in Southeast Europe and half outside of Southeast Europe.

Article taken from Property Investor News May 2008.

To read the full report click here

Romania moves up 20 places in the Forbes ‘Best Countries for Business’ report.

To read the Forbes report on Romania click here