At the opposite end, Austria is the most expensive European country, with EUR4,920/sqm in 2023, followed by Germany (EUR4,700/sqm), France (EUR4,538/sqm, but in all these countries prices are lower than in 2022.
In line with Deloitte analysis, 15 of the 24 analyzed countries posted increases in average prices for new homes.
In terms of affordability, whereas in 2022 a Romanian needed on average 6.3 annual gross salaries to buy a new 70-sqm home, last year the average dropped to 5.9 salaries, placing Romania fourth by affordability, after Denmark, Norway and Italy.
The European country with the lowest affordability among the analyzed ones is Czechia, where 13.3 gross annual salaries are needed to buy a new home, followed by Slovakia, with 12.7 salaries.
The most expensive city is Paris, with an average price of EUR14,900/sqm for a new apartment.
In Romania, the highest prices are registered in Cluj-Napoca, namely EUR2,434/sqm, and a 3% increase against 2022, while Bucharest ranks second, with EUR1,726/sqm, followed by Brasov with EUR1,618/sqm.
Thus, our country is among the few European states where the most expensive city is not the capital.
“Romania housing market evolution was influenced in 2023 as well by the high interest rates, which impacted both developers by raising their construction costs, and buyers, which faced high prices and high mortgage rates. However, the signals conveyed by the ECB and Romania national bank by kicking off interest rate reduction process amid falling inflationary pressures have the potential to revive investments in the field on the one hand and boost mortgage lending on the other one. Moreover, economic growth outlooks and population rising incomes are expected to bolster activity in the sector in the coming period,” explains Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal and Real Estate Industry Leader at Deloitte Romania.
On the rent market, Inner London climbs three positions and becomes the most expensive European city.
In Romania, the most expensive city is Cluj-Napoca, with a monthly average rent of EUR9.7/sqm, followed by Bucharest, with EUR9.2/sqm, both higher from 2022.
(English version by Catalina Apostoiu)