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CEOWORLD magazine - Latest - Banking and Finance - Romania Among Europe’s Most Affordable Countries for New Housing, Deloitte Report Finds

Banking and FinanceSpecial Reports

Romania Among Europe’s Most Affordable Countries for New Housing, Deloitte Report Finds

Romania continues to rank as one of Europe’s most affordable countries for new housing, securing the third spot after Bosnia and Herzegovina and Greece, according to the latest Deloitte Property Index. The Deloitte Property Index, now in its 13th edition, offers an in-depth analysis of the residential real estate market across 24 countries and 69 cities.

In 2023, the average price for new housing in Romania reached $1,64 per square meter, a modest increase from $1,60 per square meter in 2022.

Despite this price uptick, Romania’s housing market remains significantly more affordable compared to countries like Austria, where the average price for new housing tops the list at $5,37 per square meter. This affordability is further reflected in the number of gross annual salaries required to purchase a new 70-square-meter dwelling. In 2023, an average Romanian needed 5.9 years’ worth of gross income, an improvement from 6.3 years in 2022. Romania ranks fourth in housing affordability, following Denmark, Norway, and Italy.

In contrast, the least affordable housing markets in Europe are found in the Czech Republic and Slovakia, where buyers need 13.3 and 12.7 gross annual salaries, respectively, to afford a similar property.

Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal and Real Estate Industry Leader at Deloitte Romania, commented on the market dynamics, noting that high interest rates continued to shape the Romanian residential real estate market in 2023. These rates increased construction costs for developers and led to higher prices and mortgage rates for buyers. However, recent moves by the European Central Bank and the National Bank of Romania to start cutting interest rates as inflationary pressures ease may encourage real estate investments and boost mortgage lending.

Cluj-Napoca remains Romania’s most expensive city for new housing, with an average price of $2,66 per square meter. Bucharest follows with an average of $1,89 per square meter, and Brasov comes in third at $1,77 per square meter.

On a broader European scale, Paris remains the most expensive city for new apartments, with prices averaging EUR 14,900 per square meter. The rental market shows similar trends, with Inner London emerging as the priciest city for rentals, where the average monthly rent is $4,15 per square meter.

Marius Vasilescu, Financial Advisory Partner at Deloitte Romania, observed that the Romanian housing market in 2023 was influenced by a slowdown in residential transactions and construction activities. He emphasized the importance of stimulating market activity to meet growing demand.

In Romania, Cluj-Napoca again leads the rental market, with an average monthly rent of approximately $10,6 per square meter, followed by Bucharest at around $10 per square meter.

GDP (nominal)CapitalHead of StateHead of GovernmentGDP (nominal) per capitaGDP (PPP)GDP (PPP)GDP (PPP) per capita
RomaniaBucharestKlaus Werner IohannisMarcel Ciolacu350.41418.413780.79741.029

 

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CEOWORLD magazine - Latest - Banking and Finance - Romania Among Europe’s Most Affordable Countries for New Housing, Deloitte Report Finds
Anna Siampani
Anna Siampani, Lifestyle Editorial Director at the CEOWORLD magazine, working with reporters covering the luxury travel, high-end fashion, hospitality, and lifestyle industries. As lifestyle editorial director, Anna oversees CEOWORLD magazine's daily digital editorial operations, editing and writing features, essays, news, and other content, in addition to editing the magazine's cover stories, astrology pages, and more. You can reach Anna by mail at anna@ceoworld.biz