However, in Bucharest and major cities, price growth was way above the national average.
In consultants’ opinion, given the persistently high inflation and current loan interest rates, renting has become an increasingly sought-after option inclusively for Romanians and this is attracting investors’ attention.
“While housing in Romania is still affordable by comparison with EU countries when taking into account wages, the installment/rent ratio inversion will boost the rental market and the proportion of owners will dwindle. A rising number of international investors, as well as local developers, are contacting us with regard to housing projects exclusively destined for renting and part of these plans are also starting to materialize,” says Gabriel Blanita, Associate Director Valuation & Advisory Services at Colliers Romania.
At present, the stock of housing in compounds exclusively destined for renting in Bucharest nears 1,000 units, with another 3,000 units being under various stages of development, but Colliers estimates that in the next 2-3 years the segment of such housing has the potential to reach 5,000 units.
While Romanians’ interest for renting is rising, the desire to become owners is still high.
(English version by Catalina Apostoiu)