Housing prices in Romania rose by 34% between 2015 and 2021, while the average growth in the EU was 38%, according to a report by real estate consultancy Colliers.
Romania has seen the lowest growth in CEE region, compared to Hungary (+108%), the Czech Republic (+84%), Slovakia (+54%), Bulgaria (+49%), and Poland (+48%).
However, in Bucharest and the larger cities, the price growth was much higher than the national average.
Average selling prices for new homes in Bucharest last year stood at around €1,800 per sqm-, while in Warsaw the price was €2,800 euro per sqm, in Budapest - €3,400 per sqm, in Bratislava - €4,100 euro per sqm, and in Prague it reached €5,500 per sqm.
“Urbanization, the shortage of quality housing supply, and the growing middle class are the main drivers for the rising housing market in Central and Eastern Europe. While population dynamics in our region are declining, there is a significant difference between urban and rural areas. Despite the national population decline, some Romanian metropolitan centers - Bucharest, Iași, Cluj-Napoca or Timișoara - have experienced sustained growth,” said Gabriel Blăniță, Associate Director Valuation & Advisory Services at Colliers Romania.
In supply terms, Romanians and Bulgarians have the biggest problem with overcrowding, with almost 50% of the population living in overcrowded housing, more than double the European average of 20%.
The increasing mortgage costs are pushing more people to rent in Bucharest, according to Colliers’ experts. Rents for new apartments are even 30% lower than the mortgage rate, while the average monthly rent rose by 10%. By comparison, rents rose by between 25 to 40% in Warsaw and Prague.
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