“Prices will definitely grow more. One of the reasons prices on the real estate market have not so far increased more in Romania than in the region is the First Home program which kept apartment prices below EUR60,000-EUR65,000. If the ceiling increases, prices will be heading towards EUR95,000,” Bucsa told a press conference.
Bucsa gave Croatia as example, saying the country did the same two years ago and prices grew 20% in one year.
Per a draft ordinance published on the Finance Ministry website, the First Home program will see changes. It will be renamed the ”New Home” program and it will guarantee loans granted for the purchase of a new house, within a maximum value of EUR100,000, the equivalent in lei, guaranteed by the State for maximum 60% of the loan value, excluding interest rates, fees and bank expenses related to the loan guaranteed.
For old houses, guarantees will cover only 50% of the loan value, up to a maximum ceiling of EUR70,000.