Romania Joins Schengen: A Milestone for Economic Growth & Real Estate
Romania Joins Schengen: A Milestone for Economic Growth and Real Estate
After nearly 14 years of anticipation, Romania will officially join the Schengen Area alongside Bulgaria on January 1, 2025. This historic decision, made during the recent Justice and Home Affairs Council meeting in Brussels, promises transformative impacts on the economy and real estate market.
Economic Growth and Integration
By removing border controls for road transport, Romania is expected to see a 2% increase in GDP annually. This growth will be fueled by streamlined logistics, enhanced trade, and greater access to European markets. Over the past decade, Romania reportedly lost between 7-10 billion euros annually due to its exclusion from the Schengen Area. With this integration, the country is poised to recover these losses and accelerate its economic development.
A Boost for Real Estate
The Schengen accession is set to reshape Romania’s real estate market in several key ways:
- Increased Demand for Commercial Properties: The enhanced flow of goods and services is expected to drive demand for warehouses, logistics centers, and office spaces.
- Urban Housing Growth: Easier mobility for millions of Romanians and EU residents will heighten interest in urban residential properties, particularly in key hubs like Bucharest and Cluj-Napoca.
- Rising Property Values: Integration with European markets will push real estate prices higher, especially in prime locations such as northern Bucharest.