American-Israeli group ENG International will invest 200 million euros in the development of 12 real estate projects located in Iasi and Cluj throughout the next five years, according to the representative of the group in Romania, Moshe Rachmut.

“We will start nine projects this year, and we estimate the finalization of all investment programs by 2010,” said Rachmut.
One of the group’s companies will start in July the construction of a residential area formed of 14 blocks of flats that will have a total of 380 apartments in the western part of Iasi.

As many companies have announced several large Romanian real estate projects, representatives of the companies in this sector say housing prices will continue to increase.
From December 2005 until now the prices for construction material have increased 20 percent, which leads automatically to the increase of housing prices. The prices for old apartments are less than those of new apartments because the former are calculated per square meter and the latter per constructed surface.
As, after the location of the dwelling, the price is one of the factors that matters most in the decision to purchase, developers are trying to offer products with acceptable prices and high quality.
Romania will reach the level reported in Prague in the 2008-2009 period, when all the planned projects are finished. Referring to the effects of Romania’s EU accession, the experience of the countries that have already joined the EU shows that the interest for the real estate sector has grown after accession as well.