Real Estate Prices on the Rise in Romania
The prices of apartments in Brașov and Iași have increased significantly compared to last summer, with a 19.4% and 14.5% rise, according to the RealEstate.ro Index. A buyer now pays an additional €15,550 for a two-bedroom property in Cluj-Napoca and Brașov compared to the price they would have paid if they had made the purchase decision in June of last year. In Iași, the difference exceeds €10,000, as reported by Agerpres.
Last year, the main concern for Romanians, with the greatest impact on their rates, was the level of interest rates. Today, this concern has somewhat diminished, but is being replaced by the increase in housing prices. The increase in prices not only affects the monthly rate, but also the amount needed for the down payment. The trajectory of interest rates remains downward, recently confirmed by the National Bank of Romania’s key rate reduction – an important signal for the market.
Housing Market Trends in Romania
The prices of real estate properties in Romania are on the rise, due to a decrease in the supply of housing in major cities, coupled with high demand and increasing purchasing power,” said Dan Niculae, Managing Director of Imobiliare.ro Finance.
Minimum Income Requirements
According to the analysis, the minimum income required to access financing for two-bedroom apartments, which are the most sought after by buyers, remains below the average net earnings of employees in four counties where some of the strongest residential markets in the country are located. However, the price increases over the past year may pose challenges for some residents of Brasov, while in the case of Cluj-Napoca, purchasing with cash or having substantial savings to make a down payment of at least 33% for the desired mortgage loan is a more viable option.
Buying a Two-Room Apartment: Affordability Across Cities
Recent data shows that the prices for two-room apartments as well as the monthly rates that buyers pay are higher than they were at the beginning of last summer. The largest rates are paid by residents of Cluj and Brasov.
However, purchasing a two-room apartment is not a problem for those in Bucharest, Timisoara, Iasi, or Constanta. The average net earnings of employees in these cities exceed the minimum income required to buy a home. Buyers in Bucharest and Timisoara have the most extra money and are more likely to take out a loan.
In the rankings of cities where it is easiest to get a loan for a two-room apartment, the capital city takes the top spot, followed by Timisoara, Iasi, and Constanta.
Therefore, in Bucharest, the average net salary earned by employees is nearly 2,300 lei higher than the minimum income required to obtain a loan with a 20% down payment for buying an apartment.
Real Estate Market in Bucharest: Prices on the Rise
According to calculations made by Imobiliare.ro Finance based on data published by the National Institute of Statistics (INS), the average price requested for two-room apartments for sale in the capital city has increased by 13% compared to last summer. This is shown by the Imobiliare.ro Index for the month of June. This increase translates into costs that are 10,200 euros higher when buying a two-room apartment, leading to an increase of almost 400 lei in the necessary income for accessing a mortgage for such a property.
Currently, Bucharest residents are paying about 170 lei more per month than someone who bought a two-room apartment through a loan at the beginning of last summer. Higher monthly payments are only found in Cluj-Napoca and Brasov.
Following a nearly 10% increase in the average price requested last month compared to the same period in 2023, two-room apartments have become even more expensive in Bucharest.
Real Estate Market Analysis in Timisoara and Iasi
In Timisoara, the average price per square meter for apartments for sale has reached 1,616 euros, according to Imobiliare.ro. This means that a buyer would need to pay 80,800 euros for a two-bedroom apartment. Last year, a similar property would have cost 73,750 euros. The minimum income required to make such a purchase, considering a 30-year loan with a 20% down payment, has increased by approximately 230 lei in the same period, according to estimates by Imobiliare.ro Finance. The monthly installment has also increased by 103 lei, which is the smallest increase among the six major cities analyzed. Furthermore, the income of 4,094 lei required for a first-time buyer to access a loan is nearly 1,900 lei lower than the average net salary earned by employees in Timis County.
Real Estate Market Analysis in Iasi
In Iasi, the average price for apartments for sale last month was with ap.
Costul ridicat al apartamentelor în Constanța
Costul apartamentelor cu două camere în Constanța a crescut cu aproximativ 15% față de anul trecut. Această creștere înseamnă că un apartament similar costă acum cu 10.150 de euro mai mult decât în trecut.
Pentru a obține un credit ipotecar pentru un apartament vândut la prețul de 80.150 de euro, un cumpărător ar trebui să aibă un venit lunar de cel puțin 4.061 de lei. Aceste estimări sunt bazate pe media veniturilor necesare pentru a putea accesa un împrumut imobiliar.
Chiar dacă costurile locuințelor au crescut semnificativ, câștigul salarial mediu net al angajaților din Constanța este cu aproximativ 800 de lei mai mare decât suma necesară pentru a obține un credit ipotecar. Cu toate acestea, cerințele băncilor pentru finanțare au crescut cu aproximativ 400 de lei, iar rata lunară de achitat a crescut cu aproximativ 170 de lei.
Astfel, achiziționarea unui apartament cu două camere în Constanța, cu o suprafață utilă de 50 de metri pătrați, necesită o sumă semnificativă de bani și un venit lunar stabil pentru a putea accesa un credit ipotecar.
Real Estate Market in Constanța County
The average price for a property in Constanța County has reached €83,300, which is €7,500 higher than in June 2023. According to the Real Estate Index, the average asking price from owners and developers has increased by almost 10%.
Income and Affordability
Despite the rising prices, the incomes of employees in Constanța County are more than sufficient to make a purchase. The average net salary has reached 4,674 lei, which is about 450 lei higher than the minimum income required to obtain a loan for a two-bedroom apartment.
However, it should be noted that the price hikes in the local residential market have led to an increase of nearly 250 lei in the income needed by a buyer seeking a loan, and the monthly installment has also risen by 111 lei compared to what the same buyer would have paid if they had made the purchase last summer.
The Real Estate Market in Brasov
On the other hand, the earnings of the people in Brasov are barely keeping up with the rising prices in the residential market. Owners and developers in Brasov have significantly increased the prices of apartments since last summer. According to the Imobiliare.ro Index, we are talking about an increase of about 19% to the average value of 1,911 euros/sqm. In practice, a two-bedroom apartment is now selling for 15,550 euros more than in June 2023, so for 95,550 euros.
In order to buy a property of this type, the minimum income required by banks is, considering a 30-year loan with a 20% down payment and an interest rate of 5.59%, 4,841 lei, according to estimates from Imobiliare.ro Finance. A buyer now needs earnings about 650 lei higher than last year to get the loan. The monthly installment they will have to pay is also 290 lei higher than what they would have paid if they had taken out a mortgage last summer.
Real Estate Prices in Romania
When it comes to the average net salary earned by employees in Brașov County, it stands at 4,832 lei. This amount is very close to the minimum required for accessing a loan, but it does not cover it entirely.
Housing Prices in Cluj-Napoca
The prices demanded for homes in Cluj-Napoca exceed the national average by a large margin. According to Imobiliare.ro, apartments in this city are listed for sale at an average of 2,777 euros per square meter. Taking a two-bedroom apartment with a usable area of 50 square meters as a reference point, we can see that such a property has increased in price by 15,550 euros since last summer, now costing 138,850 euros.
To buy a two-bedroom apartment with a 30-year mortgage, for which a 20% down payment is required, you need to have a minimum income of 7,000 lei, according to Imobiliare.ro Finance estimates.
Costul locuințelor în Cluj
Costul unei locuințe în Cluj este cu aproximativ 1.100 de lei mai mare decât salariul mediu net al angajaților din oraș. Acest lucru reprezintă o creștere semnificativă față de anul trecut, când diferența era de doar 570 de lei pentru accesarea unui împrumut pentru achiziționarea unei locuințe similare.
Rata de chirie în Cluj
Rata de chirie în Cluj a crescut și ea cu aproximativ 260 de lei, ajungând la 3.166 de lei lunar. Acest lucru este în contrast cu chiria medie pentru un apartament cu două camere, care este de 550 de euro, echivalentul a aproximativ 2.700 de lei. Aceste cifre arată o presiune tot mai mare asupra locuitorilor orașului în ceea ce privește costurile de locuit.