— One-stop-shop from A. Panayides Contracting
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Cypriots are taking
The rush into Romania, which until recently was made on an individual pace, is set to accelerate as Cyprus’ mainstream companies such as Bank of Cyprus, Marfin Popular Bank and A. Panayides Contracting Pcl enter the market offering extended services and facilities, making it even easier for Cypriots to invest in Romania.
Testimony to strengthening ties between the two countries is this week’s high level visit to the EU’s newest member by Cyprus President Tassos Papadopoulos who is accompanied by a 65-member business delegation, with many CEOs and executives taking part in the three-day events.
Two seminars are planned for
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— Seminars
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Cypriot manufacturers were among the first to relocate their operations to
This could explain the record attendance during the Tuesday seminar “Investment Opportunities in Romaniaâ€, which was addressed by Ray Breden representing the British-Romania Chamber of Commerce, Antonis Loizou of A. Loizou & Associates and Kypros Ellinas, General Manager of Kyprou Leasing (Romania), member of the Bank of Cyprus Group.
The keynote address was made by Andreas Santis, Area Manager of A. Panayides Contracting Plc (APC), the sponsors of the event.
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— 10th largest in FDI
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Foreign direct investment (FDI) has accelerated since 2001 reaching over EUR 8 bln in 2006.
According to the Romanian National Trade Registry office, Cyprus was tenth in terms of value of registered capital brought into Romania at EUR 491 mln and a 3.73% share, just behind Greece with EUR 497 mln, while the Netherlands was the top ranked with EUR 2.1 bln registered capital, followed by Austria and Germany.
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— Improving economy
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Santis made particular reference to the booming prospects of
Inflation is also set to decline further from 3.8% in 2006, while unemployment is below 6.2%, with the jobless rate in the
The tourism industry is also staging a remarkable growth and becoming increasingly important to the economy. Tourism receipts are expected to have reached USD 8 bln in 2006, and are forecast to grow by 7.4% annually over the next ten years.
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— EU funding
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This will lead to more jobs, helping boost incomes, which will in turn allow people to afford their own residential homes.
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— Property prices to rise
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Santis and many experts say that with Romanian wages at just 14% of the EU average and assuming that wages and salaries will increase by an average 13% annually (as they have done in the past five years), the prospect of house price inflation, similar to the case in many other EU countries, including the UK and Cyprus, shows potential for price growth, at least at the same 13% wage growth rate.
“Although in selective areas the rate of growth is higher, we want investors to make their assumptions on the average forecasted rate,†he said.
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— One-Stop-Shop
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A.Panayides Pcl (APC) Executive Vice Chairman Vangelis Georgiou revealed during the “Investment Opportunities in Romania†seminar that A. Panayides Contracting, which has been active in Romania for over four years, has introduced its “One-Stop-Shop†concept to Cypriot and Greek investors interested to buy property and real estate in Romania.
Georgiou says APC is heavily involved in land as well as property for development investments.
“We have scouts combing
Among its land investments is the Paradise Gardens project of building plots in north Bucharest just 10 kms from the capital’s international airport, in which Demetra Investments Pcl took a significant stake last year, first by buying options and then converting the options into land titles.
Georgiou revealed that the Group has more than five projects both with respect to plots of land as well as apartments, villas and small commercial centres and office blocks in the pipeline.
“Sales in the first two months in
In addition to giving expert advice and knowledge regarding the hot-spot growth areas, or the most promising locations, APC will also offer special pre-negotiated discounts from its suppliers including lawyers, translation services and contractors as well as help to set up companies for clients.
Georgiou explained that according to Romanian law, foreign nationals may not own property directly in their name, but may do so through 100%-owned subsidiary companies.
“Instead of going to the wrong lawyer and filling in the wrong paper-work that may create problems later, we shall offer the best such service at the most competitive price from our offices in
APC also intends to use its extensive experience and know-how to bid for EU funded infrastructure projects, as well as to enter other construction related sectors.
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— Beware of cowboys
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Georgiou warned serious investors not to fall into the trap of unprofessional “property cowboys†who are offering so-called cheap property opportunities in
Recently an increasing number of Cypriots are selling property they own in
“I have heard of cases where individuals purchased plots of land without even seeing the plots, or didn’t bother to address regulatory issues including tax and proper title deeds. They don’t even know if the plot has access to a road, electricity or gas.â€
Faced with increased demand from individuals, but also banks, accounting and law firms that are advising clients on how to invest in
Among the audience at the seminar were British, Spanish, German and local Romanian investors. The presence of CB Richard Ellis, the world’s leading property consultants with offices in 180 countries, is a confirmation of the respect and clout of A. Panayides Contracting in the Romanian market.