Romania remains one of the countries with the lowest mortgage penetration rates in the European Union, according to a Colliers’ analysis.
Less than 2% of the total housing stock in Romania is backed by mortgages, compared to 15% in Hungary, 14% in Poland, and 26% in the Czech Republic.
Although limited access to financing has slowed the pace of new housing developments, investment in the rental sector provides a sustainable, long-term solution to meet housing demand.
“The prospect of rising property prices, combined with the advantages of the rental market, is driving a paradigm shift in the real estate sector. Residential rental projects are becoming increasingly appealing to investors due to their stability and long-term returns. The economic growth of Romania's major cities, particularly Bucharest, plays a key role in fueling this interest,” says Gabriel Blăniță, Director & Advisory Services at Colliers Romania.
The analysis further shows that in Bucharest, house prices have increased by approximately 50% over the past five years, while Cluj-Napoca has seen an 80% rise. By comparison, most major cities in the region have reported increases of 80% to 100% during the same period.
