Real estate prices in Romania are growing above the European average and over the long-term trend, raising questions about their sustainability, according to a report by Romania’s National Bank (BNR), reports local Profit.ro.

Mortgage lending has continued in 2016 at a sustained pace, even if banks have tightened credit conditions following the adoption of the giving-in-payment law and the ceilings for the First House programs have been exhausted.

The flow of mortgage loans granted between January-September 2016 increased by approximately 26% compared to the same period in 2015. The share of First House loans in the portfolio of mortgage loans dropped from 68.4% to 62.8% at the end of September, according to the BNR report.

The new loans include refinancing loans or conversion of existing loans.

editor@romania-insider.com