Economic and political development in this region is most advanced in Slovenia (the first country in South East Europe to introduce the euro, as of 1 January 2007), Romania and Bulgaria, which became members of the EU on the same date. The economy of Romania in particular was already benefiting from this move in the year before its accession to the EU, not least in anticipation of the grants and subsidies that the country will now receive. In the next few years Bulgaria and Romania will be working on major reforms of their justice systems. Apart from this, Slovenia and the other states of the former Yugoslavia still have a longer way to go with their political and economic restructuring. For this reason it is still difficult to assess the potential of these markets. This uncertainty is reflected in the significantly higher gross returns for properties in these countries.
Source: BA-CA Report, economicresearch.ba-ca.com; www.wko.at,
Dec. 2006
