Romania is becoming the outsourcing destination in Europe...

NEW DELHI, MAY 6:  FROM Ranbaxy and Wipro to Mahindra & Mahindra and Genpact, one place in which all Indian want to have a service or manufacturing unit in Europe is Romania. With cheap labour, 100% FDI in all sectors, and transparent tax laws, Romania is becoming the outsourcing destination in Europe.

Wipro recently announced a centre in Romania to service its French customers. India’s largest BPO Genpact has a centre in Bucharest.

Said Ernst & Young’s partner in Romania, Venkatesh Srinivasan: “There is 16% corporate tax in Romania as compared to 34% in India. There are no FDI limits and anybody can buy land. The EU accession of Romania in 2007 is predicted to boost its economy.”

The EU accession will remove custom duty structure on goods and services from Romania. It will help it gain a large market.

Indian companies are setting up manufacturing units in Romania for access to the European market. Last month, Ranbaxy bought Romania’s largest exporter of drugs Terapia for $324 million. Mahindra & Mahindra has bid for Tractorul — Romania's largest maker of Tractors for a 80% stake in the company. Cipla was also trying to buy Sindan, Romanian Oncology drug major but the bid failed, say reports. Indian IT-ITeS sector is upbeat on Romania too. Wipro will open its offshore development centre in Bucharest by May-end.

Wood, real estate, chemicals and energy sector are also booming here. The investment climate is attracting Indian companies for expanding their global delivery base to compete with global biggies like Pfizer and IBM.

American-German automotive manufacturer DaimlerChrysler could build a bus factory in Romania, George Copos, the state minister in charge of coordinating the activities related to the business environment and small and medium-sized enterprises, yesterday said. More information here >>

Bucharest Drives National Consumption

The market of consumer goods (foods, beverages and non-foods) in Bucharest is double the average in the rest of the country, due to the higher purchasing power and to the concentration of the modern retail chains in Bucharest. More information here

French Sports Gear Makers Bring Partners Along

The operations two of the world's leading sporting goods manufacturers, the French companies Salomon (a producer of skis, ski boots, snowboards) and Mavic (bikes), carry out in Orastie have attracted investments worth around 7 million euros for this area from other French companies, traditional partners of the two producers. More information here >>

Siemens VDO Moves Eastward In Romania

Siemens VDO Automotive, a supplier of electronic systems for the car industry, is launching in Iasi the second software and electronic parts development centre in Romania, after having opened a similar centre in Timisoara in 2000.
More information here >>

Real Estate news

Study Reveals Bucharest's Priciest Rents And Properties

The most expensive residential area in Bucharest is Aviatorilor-Primaverii, with an average sale price of 2,150 euros per square meter in 2005. The priciest rents are in the Kiseleff area, at an average price of 4,200 euros per month, shows a study by real estate agency Eurisko.

Australian Group Banks On Middle Class Taste For Suburbia

Australian-based South Pacific Group is planning a 50 million Euro project for Ministry of Defence personnel for 1,100 houses in Ghencea, which was in the process of Government approval as we went to press. This is part of a planned programme that could see a total of 10,000 residences all over Romania for the Ministry over ten years. More

British Real Estate Tourism In Romania

Romania will become a real estate tourism destination by the end of year, as a number of British citizens are coming here in search of real estate properties. Interested parties will buy a luxury travel package including such countries as Romania, Morocco, Monte Negro or the Czech Republic. More information here >>

Bucharest To Be Home To Largest Retail Center In Central And Eastern Europe

"We don't want people to shop abroad; we want to offer them the opportunity to shop in Romania," said Baneasa project's retail development director, Ali Ergun Ergen, on Wednesday in an interview for Bucharest Daily News. Ergen announced several novelties to be found at Baneasa Shopping City, the largest commercial center in Romania ... More

Greece: Growing Interest In Romanian Real Estate Acquisitions

Greek construction companies, investors and financial institutions are greatly interested in real estate acquisitions in Romania, according to the latest edition of “Look on the economy” publication presented by Emporiki Bank and was prepared by the Bank’s Financial Analysis and Research dept. (Source: Reporter.gr, 2006-05-04 08:41)

Real Estate

Bucharest Industrial Zones Could Become Residential Areas

Existing production facilities would be relocated outside the city limits and the land would be ecologically rehabilitated, according to representatives of realty company Regatta. Several plots of land in the Republica - Faur area have already been sold... More

Business

Car Market Boom Drives Porsche Romania's Profit To 48 Million Euros

Porsche Romania, the biggest automobile importer on the domestic market, last year made more than 48 million euros in profit, an increase of 65% on the previous year, after having doubled the number of cars sold. More information here >>

Real Estate

Residential Project To Unfold Next Year

A new residential compound near Dacia Boulevard will be ready for use in March next year, when the EUR 800,000 building will be finalized, Eurohouse announced last week. More information here >>

Lugera & Makler Moves To Larger Building

Lugera & Makler, the Dutch human resources company, has leased almost 1,000 sqm in the Union II office building and intends to move its headquarters there by May, Eurisko, the dealer of the transaction, announced last week. More information here >>

America House Hosts Cosmote HQ

Cosmote set up its headquarters last week in America House office building, near Victoriei square, the company announced. The new Cosmote headquarters cover some 3,500 sqm of the fifth and sixth floors in the western wing of the building.
More information here >>

Real Estate

China Town Investment Set To Reach EUR 200 Million

Niro Group, the company developing the China Town project, estimates that the entire investment required will amount to EUR 200 million. “For construction work up to now, we have spent around EUR 100 million,” Florin Suicescu, executive manager of Niro Group, said. More information here >>

Business

Enterprise Investors Readies Investments

Polish investment fund management company Enterprise Investors could launch a new investment fund by yearend, whose final capitalisation will stand at 500-600 million euros, and will target projects in the Central and Eastern Europe, Romania included. More information here >>

Coca-Cola HBC Romania Doubles Net Profit

Coca-Cola HBC Romania, the bottler of the Coca-Cola beverages for the Romanian market made more than 38 million euros (139 million RON) in net profit in the first 11 months of last year, almost double the profit for the entire 2004. More information here >>

Business

Tiriac Has Over 500 Million Euros Planned For Real Estate Developments

Businessman Ion Tiriac, thought to be the richest Romanian, is now focusing on the real estate business, which has become the strategic direction for the expansion of his business. More information here >>

Sales Of New Cars Up 4% In Q1

The sales of new cars on the Romanian market have progressed by 4.1% in the first quarter of this year from the same time last year to 50,260 units, according to the data presented by the Association Automotive Manufacturers and Importers (APIA) yesterday. More information here >>

Real Estate

More People Catch The Holiday Home Bug

The holiday home market, despite appearing to flourish, is estimated by constructors in the industry to represent only 1 percent of total construction. The market is expected to increase at some 2-3 percent in the next year. More information here >>

Real Estate

American ProLogis Builds $80 Million Logistics Park

American developer ProLogis will build an $80 million logistics park in western Bucharest, near the Bucharest-Pitesti highway, company representatives announced last week. ProLogis Park Bucharest A1 will be the company’s first Romanian project and the six warehouses it will comprise will be delivered next year. More information here >>

Neocity Group Ploughs EUR 1 Billion Into Romania

Israel-based Neocity Group is planning to put EUR 1 billion into the Romanian real estate market over the next three years, mainly targeting Constanta and Bucharest, Elan Schwartzenberg, president of Neocity, said last week. “This sum shows our trust in Romania’s potential and development,” said Ehud Benshach, the chairman of Neocity Group. More information here >>

Neocity Plans Skyscrapers

Another project in Constanta announced by Neocity Group is Neocity Peninsula, a residential project worth some EUR 300 million, in the city’s historic quarter. The others, both in Bucharest and Constanta, are Neopark Residence, Neoforest, Neoresidence, Neolake Residence, and Neocity Office III. These projects are still in the design phase, company representatives said. More information here >>

Real Estate

ProLogis Picks Up 69 Acres In Romania

ProLogis Trust is developing its first project in Romania. The publicly held developer and owner of distribution facilities says it has acquired 69 acres west of Bucharest on which it plans to six distribution buildings totaling 1.7 million sf. The total development cost is estimated at $80 million. More from GlobesSt.com

Developers Turn to Brasov Area

Brasov, one of the main tourist destinations in Romania, is also beginning to attract real estate investors. Infrastructure improvements and the prospect of an airport in the near future raised the area’s business profile. More information here >>