According to the official data published by the Ministry of Labor, more than 9.000 foreigners have worked in Romania the previous year. Many of these constitute an important part of the clientele for the residential market.
From the perspective of the real estate market, the expatriates that end up working in Romania fall in two main categories: those who work in a multinational company, occupying middle or top management positions and those who arrive on the Romanian territory as entrepreneurs.
In general, the expats from the first category have their rent paid by their employers, and the procedure of identifying the appropriate accommodation for the employees is conducted by internal departments or by companies specialized in relocations.
But lately, a new trend has developed steadily, especially in what concerns those occupying positions in middle management, in which expats have negotiated a relocation package which has to be paid directly by them. This task of finding an apartment falls on each and every one of them.
Areas preferred by expats
The first criterion in selecting the appropriate property is its location. It is totally normal for areas in which communities of expats have already formed to be highly sought, where individuals can feel “like home” in the company of people of the same nationality. The northern area of Bucharest, where probably more than 70% of expatriates who work in the Romanian capital city live, is the first choice for a foreigner.
The most sought after area remains however Herestrau, where more than 50% of the properties located here are rented. Many of the expats are active people, reason for which the Herastrau and Northern Highway area is preferred as it is in close proximity of Herestrau Park, where they can jog in the morning, go out with their children or have dinner in some of the most highly rated cafes and restaurants in Bucharest.
Aviatorilor, Kiseleff and Primavarii are areas chosen by those who dispose of a more generous budget. Likewise, Dorobanti is highly sought after by this type of client.
20% of expats, especially the young ones, chose the central area due to its proximity to a considerable number of places where they can spend their leisure time.
How many rooms do expats want?
In terms of real estate properties, the majority prefers apartments with 3 rooms, considering that most of the times they are relocated in Romania with their families, in brand new buildings, completely decorated and furnished, which give them a feel of warm and hospitable home.
Those working for embassies highly differentiate themselves from the rest as they are interested in apartments located in villas decorated with pieces of furniture made out of massive wood.
Those who take over positions of top management prefer penthouse apartments, which dispose of generous terraces and offer a breathtaking view. The individuals who want a villa chose the Baneasa-Pipera area and wish for the accommodation facility to be part of a residential complex where they can benefit from administrative services, a gym or a pool, as well as other facilities offered in that particular location, but most importantly they seek the sense of community which is offered in such locations.
How does an expat negotiate?
The negotiations with expats differ according to the category of people in which they fall. If the rent is covered by the employer, then the negotiations are simple due to the fact that the people in charge of the negotiations are familiar with the market, the prices and the facilities, and the discussion is carried on between professionals and it is based on real arguments.
The negotiation is carried on both in terms of price and of various facilities which can improve the quality of living in that specific property – from objects of furniture and decorations all the way to the satellite antenna which can capture particular channels that are available in their home country.
On the other hand, if the potential tenant pays his rent by himself, the negotiation is a much more difficult process, the tenant being inclined on a regular basis to opt for a smaller price and to make some concessions in terms of the facilities offered both by the apartment and the area.
Time is money
The time it takes an expat to decide on renting an apartment is much smaller compared to a Romanian citizen, the first having a limited timeframe in which to choose the property in which to dwell.
The difference however between the two is that expats are very well informed, going through an initial property selection by comparing the pictures and descriptions of the real estate properties received via e-mail. There are instances in which the employer sends an individual to see a property a week before the potential tenant arrives in the country so that s/he can limit the offers selected initially.
Some recommendations
It is recommended for expats to be attentive when it comes to the collateral expenses of renting a real estate property, and these refer to maintenance taxes, utility costs, fees charged by the residential complex, etc., which, leaving aside the fact that the services are more or less the same, can fluctuate even with 100% between 2 comparable residential ensembles.
Moreover, the distance between the accommodation facility and the place of employment, or kindergartens and schools (for those who arrive with their families) is very important because the traffic in Bucharest is in no way different than that of other European capital cities.
Last but not least, another sensible aspect, but much more complicated to evaluate by the potential tenant without the help of the consultant, refers to the “quality of the landlord” and his availability when it comes to conducting various repairs in case certain maintenance problems appear in the apartment. In effect, nothing is more important that quality.
Consultant & Owner
Green Angels – the angels of real estate
Certified Residential Specialist ®
Mobile: 0040 747 774 714
Email:
Web: www.greenangels.ro
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