Housing is becoming less and less affordable to Romanians due to the high cost of loans. Meanwhile, bank-financed apartment acquisitions continue the declining trend that started this spring, according to a report published by real estate consultancy firm Colliers.

As the gap between mortgage and rent narrows, given that market prices rise and lending conditions tighten, Colliers consultants are seeing a growing demand for rents.

This demand has so far been met by small investors who bought packages of apartments and put them on the rental market, but now it is starting to gain the attention of big players as well.

On the market for apartments and houses, transactions began to decline starting from the spring of this year as a result of high energy costs, rising construction materials and fuel prices, in addition to the rising costs associated with mortgages, Colliers consultants point out.

Specifically, the total stock of home loans has reduced its annual growth rate to 10% at the end of July, after the annual growth at the end of 2021 stood at 13%.

(Photo: Stokkete/ Dreamstime)

andrei@romania-insider.com