Determinants of the real estate market: the Romanian case

Real estate represents a significant portion of most people's wealth, and this is especially true for many homeowners everywhere in the world. The size and scale of the real estate market make it an attractive and lucrative sector for many investors. This paper aim at presenting the main determinants of the real estate market in Romania such as demographics, interest rates of financing instruments, the economy (measured by economic indicators such as the GDP, employment data, manufacturing activity, the prices of goods), government policies/subsidies legislation that can have a sizable impact on property demand and price, real estate investment opportunities, depth and sophistication of capital markets, investor protection and legal framework, administrative burdens and regulatory limitations, and socio-cultural and political environment.