Appreciation over time of Nordis Mamaia residential apartments
Known for a strong sense of ownership, Romanians are in the top ranking in terms of home ownership. Eurostat data reveals that more than 96% of our country's inhabitants own a residential property.
This is due to high affordability, with the average price per square meter in Romania being among the lowest in the European region, according to the Deloitte Property Index 2023 study.
Why real estate investments are at the top of Romanians' preferences
Among the main reasons behind the primary need for housing are stability and financial security. Once this first step has been taken, the need for an investment to generate a passive income on top of the income generated by the basic gainful activity is activated.
In recent years, several types of investment have emerged sporadically, with varying returns, but property investment continues to be the most secure and profitable type of investment.
Now is a good time to invest in real estate, as there are factors that point to rising prices in the market in the coming period. The first factor is Romania's membership in the European Union and the trend towards administrative and financial alignment with member countries, including in terms of real estate prices. The upward trend is underpinned by the rising incomes of Romanians, the favorable economic situation, and the good long-term economic outlook.
At the moment, Romania is at the bottom of the ranking in terms of cost per square meter, averaging €1400, while at the opposite end of the scale, in countries such as Germany and France, the cost is over €4600. Also relevant is the purchasing power, which confirms that a Romanian needs, on average, 6.3 gross annual salaries to buy a 70 sqm. house, while in Slovakia, for example, 14 gross annual salaries are needed.
Appetite for real estate investment in tourist areas
More and more people are considering buying a holiday property, as the annual return generated by hotel rentals exceeds the annual return of a property located in large cities, which largely involves long-term individual rentals.
The annual rental return is the main reason for a property investment. In the case of Nordis Mamaia properties, owners can benefit from the following gains:
7% - contractually guaranteed annual return for the buy-a-hotel-room concept, which functions as a financial product secured with a real estate property; 10% - estimated annual return for properties with residential function, which can generate passive income through individual rental, or with property management service provided by Nordis Group.
Other extremely important aspects considered for a real estate investment are location, facilities, quality of construction and level of sustainability of the building, and the potential to increase in value over time.
Appetite for real estate investment in tourist areas
The best time to invest in such a property is when a building is under construction. For example, for the Nordis Mamaia ensemble, there are several arguments relevant to making an investment at the project stage:
- Advantageous prices;
- 15% discount if paid by the investment method;
- 7% discount if a down payment of 25% of the value of the property is made and then paid in installments, by stages of construction or fixed installments;
- Estimated appreciation of more than 40% by the time of completion as assessed by Horwath HTL, the global leader in hotel and tourism consultancy and valuation;
- Additional appreciation in value with the opening of the largest 5-star hotel & residence in Romania, which has the largest SPA on the Romanian coast, with an area of 3200 sqm.
Currently, the prices of Nordis Mamaia stage 2 residential apartments represent an extraordinary investment opportunity. A studio in the construction stage of stage 2 of the complex, where work is already underway on the 4th floor, is priced from €69,900 + VAT.
As the construction process progresses, prices increase step by step, and as all the facilities in the 5-star resort open, the value of all properties, including the completed ones, will increase.
Case study - Appreciation over time of the value of Nordis Mamaia 5 residential apartments *****
Started at a time when demand was increasing, the Nordis Mamaia Phase 1 residential buildings were attractively priced during the construction process: studios - investment price from 73,719 Euro + VAT and 2-room apartments - prices from 137,710 Euro + VAT.
In just 2 years, when the buildings are in the final finishing phase, the value of a studio has appreciated by 44% and of a 2-room apartment by 46%, even more than the initial estimate.
Investors who took advantage of the Nordis Mamaia off-plan prices and made the purchase with the sole role of a financial investment that can bring them a profit through the value of appreciation over time, get more than €60,000 when reselling a 2-room apartment and more than €33,000 for a studio.
Investments in the area will influence the functionality and aesthetic components, and since Mamaia Nord has been officially declared a resort, over 10 million Euros will be allocated to improve tourism in the area, from access and landscaping to facilities and services. This will increase the level of interest in the area and thus increase the value of Nordis Mamaia properties.
What factors ensure attractiveness and guarantee returns over time
The building standard is an important criterion for investors who see sustainability as a guarantee of the value of their investment over time. Even banks have better credit conditions for real estate developments that meet environmentally friendly building standards, which confirms market expectations.
Nordis Mamaia 5 stars is developed according to GREEN Homes standards, which increases its attractiveness.
Amenities and facilities are extremely important for a real estate investment from which a good annual return is desired. Nordis Mamaia apartments are equipped with a SMART Home system, have underfloor heating, and large glass spaces, which ensure a high level of comfort. An extraordinary wellness resort, Nordis Mamaia includes a unique mix of facilities: an impressive SPA, fitness room, indoor and outdoor pools, 12 restaurants and cafes, multipurpose event hall, ballroom, playgrounds, VIP Cinema, beauty center, medical recovery clinic, private beach.
The fact that real estate investment is a physical asset gives a higher degree of security compared to other types of investments. The lifestyle offered in terms of living conditions and services reaches the highest level. And the facilities available all year round ensure a 5-star lifestyle, whatever the season.
The opening of Nordis Mamaia Hotel will be announced soon, but until then, the offer for residential apartments in Phase 2 is affordable and will benefit from at least 40% appreciation over time, as confirmed by the case study presented.
