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OVERVIEW
We have chosen Ploiesti due to the current dynamics of the real estate market in this specific city.
Ploiesti is the county seat of Prahova County and lies in the historical region of Wallachia, Romania. The city is located 56 km (35 miles) north of Bucharest, the capital of Romania. Ploieşti grew in the 19th century into the largest oil-producing centre of SE Europe. Between the two World Wars, local industry was boosted by petroleum processing in particular. Major oil companies, most of them foreign, started operations in the city. In 1939, for instance, the 12 refineries of Ploiesti provide 80% of the total petroleum processed in Romania
Area: 58.2 km2
Population: 232,527 (2002 census)
For the past few years, Ploieşti has experienced rapid economic growth due to major investments from foreign companies, including Lukoil, Unilever, Coca-Cola, Interbrew, Timken and British American Tobacco.
On January 1st 2007, Romania became a member of the European Union. Situated in the South Eastern part of Europe, Romania became the seventh largest member of the European Union.
Ploiesti municipality occupies the first place after Bucharest regarding the value of the achieved industrial production. Approximately one quarter of the industrial production is related to oil processing at Petrotel, Astra and Vega Refineries and nearby there is Petro Brazi. There is a local tradition based on the production and the exportation of oil, chemical and petrochemical equipments (UPETROM, UZUC, UZTEL), heavy bearings, fabrics, and cables. The specialized institutes are in charge with oil and gases extraction, oil equipment maintenance, and crude oil processing. Ploiesti also has one of the country’s most important units of producing construction materials.
Being Romania’s second economic centre, Ploiesti is situated 57 km north of Bucharest, the capital city.
Novicio Residence is situated in Tantareni, Blejoi, the most developed suburb of Ploiesti, only 4 km away from city centre. Blejoi is due to become part of the Ploiesti area in the near future. REAL ESTATE MARKET IN PLOIESTI Ploiesti is situated in an area with an increasing economical development, leading to a growing buying power and, consequently, to growing prices. This assumption is sustained by the growth of the land and building prices by 45% since the beginning of the year. The return on investment ratio on the real estate market in Ploiesti can reach as much as 50%. The prices are on an ascending evolutionary curve. With a numerous population, in Ploiesti the demand outstrips the offer. Therefore, the prices are expected to constantly grow for the next years. Specialty reports show a 35% to 45% growth every year for the residential market. In Ploiesti, the location of Novicio Residence, the high level of land division shifted the real estate investments towards the outskirts of the city and the villages situated North and Noth-East of Ploiesti. The preferred residential structures are villas, due to private gardens that surround them. The average size of land plots in Ploiesti is situated between 275 and 350 square meters. Villas within the Novicio Residence are built on plots of land ranging between 400 and 450 square meters. NOVICIO RESIDENCE Project details The project will be developed in 3 phases: Phase 1 - 8 villas - 1 apartment building consisting of 12 apartments, retail units (max. 4) - Completion date: End of June 2007 Phase 2 - 10 villas - 1 apartment building consisting of 16 apartments - Completion date: End of December 2007 Phase 3 - 12 villas - Completion date: June 2008 The land where the project is erected measures 10,000 sqm and is situated in the Eastern area of Ploiesti. It is located in the vicinity of the main access roads which are part of the public transportation routes. Villas are built on plots of land ranging from 360 square meters to 420 square meters. There are 5 types of villas available within the development. The land perimeter is legally defined, and is protected against any potential legal disputes. The land is equipped with all amenities. Any construction erected on the land, will serve residential purposes only. On a constantly growing market, the new apartment segment has become very popular, as people are willing to move from the old communist buildings to new, more spacious apartments. Ploiesti is a First Category city with a population of more the 200,000 inhabitants and a complex economic environment. Easy access to mortgages has lead to a price increase on the real estate market. During the past 5 years, household prices have grown 3 times, whereas the price of land has increased 10 to 15 times, depending on the positioning and the characteristics. |
