Falling mortgage rates in Romania have pushed monthly loan payments below average rent for the first time in recent years, according to analysis by online mortgage broker Ipotecare.ro.
The average monthly repayment on an €85,000 mortgage over 25 years, at a fixed interest rate of 4.55% per annum, for purchasing a one-bedroom apartment in Bucharest valued at €100,000 and built before 2000, stood at RON 2,469 in May. This is just RON 49 higher than at the start of last year.
By comparison, the average asking rent for the same type of furnished apartment reached RON 2,693 in May (around €517), making it 9% higher than the monthly mortgage payment needed to buy the property. Average asking rents are also 7% above the level recorded at the start of this year and 21.5% higher than at the beginning of 2025.
"The most competitive mortgage offers currently available are almost 2.5 percentage points below the peak recorded three years ago," said Laurențiu Bogdan, Managing Partner of Ipotecare.ro. "Financial institutions are working to keep borrowing attractive, and the current 4.55% rate on offers is significantly below the 6.50% monetary policy rate – a unique situation in Europe and a sign of confidence in the local market."
The average monthly repayment required to buy a one-bedroom apartment is 22% higher than in 2021, while the average wage in Bucharest has increased by 66% over the same period. Over the same timeframe, the average asking rent for a furnished one-bedroom apartment in Bucharest has increased by around 46%.
