Romania has retained its position as one of the most affordable countries in Europe for new housing, ranking third after Bosnia and Herzegovina and Greece, according to the latest Deloitte Property Index.

The average price for new housing in Romania was EUR 1,504 per sqm in 2023, a slight increase from EUR 1,461 per sqm in 2022.

Despite this rise, Romania's housing remains significantly cheaper compared to Austria, which tops the list at EUR 4,920 per sqm.

The affordability of housing in Romania has also improved. In 2023, an average Romanian needed 5.9 gross annual salaries to purchase a new 70 sqm dwelling, down from 6.3 salaries in 2022. This ranks Romania fourth in terms of affordability, trailing behind Denmark, Norway, and Italy.

Conversely, the least affordable countries in Europe are the Czech Republic and Slovakia, requiring 13.3 and 12.7 gross annual salaries, respectively.

“The Romanian residential real estate market continued to be influenced in 2023 by high interest rates, which impacted both developers, by increasing their construction costs, and buyers, who faced high prices and higher mortgage interest rates. However, the signals sent by both the European Central Bank and the National Bank of Romania, by starting to cut interest rates, as inflationary pressures ease, have the potential to boost real estate investments and encourage mortgage lending," said Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal and Real Estate Industry Leader at Deloitte Romania. 

Cluj-Napoca remains the most expensive city in Romania for new housing, with an average price of EUR 2,434 per sqm, followed by Bucharest at EUR 1,726 per sqm and Brasov at EUR 1,618 per sqm.

Paris is the priciest city in Europe for new apartments, averaging EUR 14,900 per sqm. The rental market shows similar trends. Inner London has become the most expensive city for rentals, with an average monthly price of EUR 33.8 per sqm.

In Romania, Cluj-Napoca leads with an average rent of EUR 9.7 per sqm per month, followed by Bucharest at EUR 9.2 per sqm.

“Housing prices and rents in Romania were influenced in 2023 by a decrease in residential transactions and a slowdown in housing construction activity. Stimulating market activity is crucial to meet the increasing demand,” noted Marius Vasilescu, Financial Advisory Partner at Deloitte Romania.

The Deloitte Property Index study, now in its 13th edition, provides comprehensive analysis of the residential real estate market across 24 countries and 69 cities, with all price statistics converted into euros for comparability.

(Photo: Stokkete/ Dreamstime)

andrei@romania-insider.com