Romania continues to rank as one of Europe’s most affordable countries for new housing, securing the third spot after Bosnia and Herzegovina and Greece, according to the latest Deloitte Property Index. The Deloitte Property Index, now in its 13th edition, offers an in-depth analysis of the residential real estate market across 24 countries and 69 cities.
In 2023, the average price for new housing in Romania reached $1,64 per square meter, a modest increase from $1,60 per square meter in 2022.
Despite this price uptick, Romania’s housing market remains significantly more affordable compared to countries like Austria, where the average price for new housing tops the list at $5,37 per square meter. This affordability is further reflected in the number of gross annual salaries required to purchase a new 70-square-meter dwelling. In 2023, an average Romanian needed 5.9 years’ worth of gross income, an improvement from 6.3 years in 2022. Romania ranks fourth in housing affordability, following Denmark, Norway, and Italy.
In contrast, the least affordable housing markets in Europe are found in the Czech Republic and Slovakia, where buyers need 13.3 and 12.7 gross annual salaries, respectively, to afford a similar property.
Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal and Real Estate Industry Leader at Deloitte Romania, commented on the market dynamics, noting that high interest rates continued to shape the Romanian residential real estate market in 2023. These rates increased construction costs for developers and led to higher prices and mortgage rates for buyers. However, recent moves by the European Central Bank and the National Bank of Romania to start cutting interest rates as inflationary pressures ease may encourage real estate investments and boost mortgage lending.
