Romania Among Europe’s Most Affordable Countries for New Housing, Deloitte Report Finds
Romania Maintains Its Position as One of Europe's Most Accessible Housing Markets Despite Rising Costs
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Romania’s Housing Market Remains Accessible Despite Rising Costs, Outperforming Much of Europe in Affordability
Romania continues to stand out as one of Europe’s most affordable countries for new housing, ranking third behind Bosnia and Herzegovina and Greece, according to the latest Deloitte Property Index. This 13th edition of the Deloitte Property Index provides an in-depth analysis of residential real estate markets across 24 countries and 69 cities, shedding light on the dynamics that shape affordability and access to housing across the continent.
In 2023, the average price for new housing in Romania reached $1,640 per square meter, showing a slight increase from $1,600 per square meter in 2022. Despite this upward trend, Romania’s housing market remains far more affordable compared to other European nations. For instance, Austria leads the region with the highest average price for new housing, exceeding $5,370 per square meter.
Affordability in Romania is further underscored by the number of gross annual salaries required to purchase a 70-square-meter dwelling. In 2023, an average Romanian needed 5.9 years’ worth of gross income to afford such a property, marking an improvement from 6.3 years in 2022. This places Romania fourth in terms of housing affordability in Europe, trailing behind Denmark, Norway, and Italy. On the opposite end of the spectrum, the Czech Republic and Slovakia emerge as the least affordable markets, where buyers need 13.3 and 12.7 gross annual salaries, respectively, to purchase a comparable property.
Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal and Real Estate Industry Leader at Deloitte Romania, highlighted the impact of high interest rates on the Romanian real estate market in 2023. “These rates have increased construction costs for developers and led to higher prices and mortgage rates for buyers,” she noted. However, with the European Central Bank and the National Bank of Romania beginning to cut interest rates as inflationary pressures ease, there is hope that real estate investments and mortgage lending will see a resurgence.
In Romania, Cluj-Napoca remains the most expensive city for new housing, with average prices reaching $2,660 per square meter. Bucharest follows with an average of $1,890 per square meter, while Brasov comes in third at $1,770 per square meter.
On a broader European scale, Paris tops the list as the most expensive city for new apartments, with prices averaging EUR 14,900 per square meter. Similarly, the rental market in Europe reflects these trends, with Inner London emerging as the priciest city for rentals, where the average monthly rent is $4,150 per square meter.
Marius Vasilescu, Financial Advisory Partner at Deloitte Romania, commented on the market trends, observing that the Romanian housing market in 2023 experienced a slowdown in residential transactions and construction activities. He emphasized the need to stimulate market activity to meet the growing demand for housing.
In the Romanian rental market, Cluj-Napoca leads once again, with an average monthly rent of approximately $10.60 per square meter, followed closely by Bucharest at around $10 per square meter. Despite these regional variations, Romania’s housing market remains a beacon of affordability in Europe, offering accessible options for new buyers and renters alike.
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