A new real estate agency in Romania is now providing for Ukrainian investors who intend to buy property on the local market. Its founders are Ukrainian Denys Sedakov and Romanian Dumitru Mocanu, who met when communities from across Romania began offering aid to Ukrainian refugees, reports Romania Insider.
New City Romania is the first Romanian-Ukrainian real estate agency and collaborates with residential projects such as Cosmopolis, Greenfield, Aqua City, City Point, Luxuria Residence, Nusco City, Win Herăstrău, Up-Site, City Gardens, Confort Nord, Herăstrău Boutique, My Corbeanca, New Point, Onix Park, Elements by the Lake, or Avangarde Forest.
„Hundreds of thousands of Ukrainians rented properties at the beginning of spring and are now starting to invest in real estate, a market that in Romania has an annual return of 5-6%, among the most profitable in Europe”, the company stated in a press release.
According to the same source, Ukrainian buyers are between 30 and 70 years old. Most of them already have children or grandchildren in Romania and want to ensure their stability. Some work remotely or have already found jobs here and don’t want to live in a rented space anymore.
„This summer, seeing that the war is far from over, we decided to enter the real estate market in Romania amid increased demand from Ukrainian investors who wanted to secure their capital”, said Denys Sedakov, partner New City Romania.
„First of all, there are those who are looking for apartments because they want to stay here, they have a budget of EUR 60-70,000 from which they buy studios or one-bedroom apartments. On the other hand, we have those who have money saved up and are looking to generate passive income from buying and renting out 2 or 3 bedroom apartments. The third type of investors is looking for apartments between EUR 90-140,000 for which they pay a 5% VAT this year and which they can resell in the future because, with the change in VAT, the price of the apartment will also increase.”
Dumitru Mocanu, New City Romania partner, says that in certain cases, Ukrainian women don’t want to leave their families and homes, but men insist on moving to a safer place, such as Romania.
„Other Ukrainians call us from other European countries saying that they want to settle in Romania because it is closer to their home, the sales conditions are much better, and, even with the idea that the war will end, the period of reconstruction of the country will be a long one anyway, and they prefer to be close”, Mocanu explained.
The main factors that attract Ukrainian investors:
- prices similar to those in Ukraine before Russian invasion;
- Favorable conditions for Ukrainians to obtain temporary residence permits and open bank accounts;
- High investment reliability (unlike that of Ukraine), when buying a property in instalments;
- A short distance from Kiev to Bucharest of approximately 1,000 km.
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