MANCHESTER, England, August 28 /PRNewswire/ --     Says Pelle Langli, chief executive of Emerging Real Estate -
one of the UK's leading emerging property investment consultancies - and
agent for Basarabia Boulevard, a luxury investment opportunity in Bucharest.

Over the last 18 years, there's no doubting Romania has worked
hard to shed its Ceausescu past. The whole country, led by its buoyant
economy, is on the way up, but what is driving the property market and what
are the options for potential investors?

Firstly, current demand heavily outweighs supply. There are
over two million Romanians living in Bucharest, yet last year just 8,800
homes were built across all sectors and for all demographics. City planners
and the National Housing Authority believe there is a need for some 200,000
extra homes specifically for the emerging middle classes.

Statistics show that there are now 100,000 Bucharest residents
considered to be in the middle class bracket. This new social sphere is
becoming ever larger and more powerful as international corporations such as
KPMG, Orange, Oracle, Toyota, IBM, Alpha Bank and ING Bank open offices in
the city. This type of foreign and large scale commercial investment has
brought, and will continue to bring, re-generation, employment and increased
wealth to the local population who are renowned for enjoying luxury goods and
prestige sports cars.

In January 2007, Romania joined the European Union (EU) which
prompted the kind of investment that had never been seen before. EU
development funds are now pouring into the country to improve the general
infrastructure and large scale private investment is attracted by the cheap
labour market and the availability of hard working locals. According to the
CIA Factbook, Romania now tops the table when it comes to growth in the
emerging markets of Europe with 2004 seeing GDP at 8.5%, 2005 at 6% and 2006
at 7.7%.

After the revolution in 1989 and the fall of Ceaucescu, every
Romanian citizen was given their home. This means that 89% of the population
now owns their home without a mortgage, so they are equity rich and not
afraid to spend it on more modern and luxurious properties - even though the
Romanian mortgage market in is still in its infancy. There are also a lot of
young Romanians who are taking advantage of this lending and are now getting
on the property ladder ensuring a new wave of property owners are coming on
stream. Mortgages have only been available since 2003 and account for only 1%
of GDP compared to 49% in the UK, which leaves a huge potential for growth.

At the present time, foreign nationals are forbidden to
directly own real estate in Romania. However, a Romanian company may own
property even if that company is 100% owned by a foreign national. The
process for creating these companies is not difficult for investors if a
credible law firm is instructed to set up a limited company based in Romania.

There is an added bonus in that these companies will be exempt
from the VAT that private individuals must pay - this currently stands at
16%. In most instances, the deposit is set at an amount equal to 20% of the
overall purchase price of the property. Associated expenses, such as lawyers'
fees, notary costs and state taxes will account for at least an extra 5% of
the original purchase price.

One key investor opportunity is Basarabia Boulevard - situated
in a popular city centre suburb of Bucharest. The development will comprise
of 850 studios, one and two bedroom high specification apartments and has a
selection of incentives designed specifically for the investor market with
prices starting at GBP57,478.

Only 25% of the property is being released before construction
begins in September 2007 and the other 75% will be sold to the local
population when the project is completed in September 2009.

Pelle Langli, chief executive office of Emerging Real Estate,
commented; 'Romania is quickly gaining recognition as one of the world's most
exciting investment hot spots. For Basarabia Boulevard, we've worked hard to
formulate an attractive payment plan of 20% on contract and 80% on
completion, two years later. This offers investors two options; either to
're-sell' the assignable contract to another buyer and release a short term
profit or, to complete the investment with 80% loan to value funding. This
will allow an immediate release of equity following the expected capital
growth over the two year build period. The developer will manage both these
exit strategies as it will have sales and lettings agents based in
Bucharest.'

Emerging Real Estate's Reasons to invest in Romania:

- Bucharest's economy is now expanding rapidly and is expected
to have achieved over 9% GDP growth in 2006, making it Europe's fastest
growing city economy (Source: BSL Experian, EIU, October 2006)

- Unemployment was estimated at 6.1% for Romania as a whole
for 2006 (CIA Factbook)

- EU Accession has created considerable momentum for
international business and has stimulated a significant upswing in Foreign
Direct Investment which is forecast to continue for the remainder of the
decade. (Jones Lang LaSalle)

- The population of Bucharest has a high disposable income
relative to total incomes.

- There are over two million Romanians living in Bucharest and
last year only 8,800 new homes were built across all sectors and
demographics. City planners believe there is a need for 200,000 extra homes
specifically for the emerging middle classes. (National Housing Authority,
Romania 2006)

- The developers of Basarabia Boulevard, RI Investment Group,
have delivered some of the largest investment projects in Romania.

- Capital growth in the residential sector of Bucharest is
expected to increase by 20% to 30% in 2007 according to Channel4.com.

- Local demand among the emerging middle classes is currently
high - Colliers International predicts "the middle income segment of the
Bucharest market is entering its long expected boom."

- Unrivalled Foreign Direct Investment - Romania received
nearly $11 billion USD in 2005. Romania attracts huge investment due to the
cheap labour market and the availability of hard working locals.

- Large corporations already have a presence in the city
including KPMG, Orange, Oracle, Toyota, IBM, Alpha Bank and ING Bank. This
type of foreign investment brings employment and increased wealth to the
local population, increasing salaries and the spending power of the locals.

Emerging Real Estate:

    http://www.emergingrealestate.com
    +44-(0)845-601-7293