UK’s Obelisk forecasts three-fold return on Cluj apartments, scouts for more projects

Newsroom 08/09/2008 | 16:54

It will consist of 65 apartments on five floors. Obelisk is planning to include more Romanian real estate projects in its portfolio, and even start acting as an investor on the market through its division Obelisk Finance. The UK company has chosen real estate consultancy firm Re/Max Premier in Cluj-Napoca to advise it on future investments.
Obelisk International forecasts a 20 percent value uplift on completion of the Fontana Residence project, and including a 70 percent mortgage, an investor would earn an estimated return on investment of 242 percent over a five-year period, with an estimated rental yield of approximately 5.5 percent per year.
The local market is seeing an increasing real estate offer, but deals are not being closed at the same pace as in the same period last year. The drop in activity is compensated for by experienced players, coming from mature markets, individual investors who buy properties off plan, rent them until the investment matures and re-sell the residential properties to Romanian buyers, after three to five years, according to Obelisk.
Corina Saceanu

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