After growth in housing prices in Romania’s main cities in 2018, apartments prices will grow slightly or will stagnate next year. Prices are seen rising gradually by 2022, especially in areas with high economic growth potential.
The government-backed mortgage lending program for first time homebuyers, which was the main driver of the residential market in 2018, is seen slowing down and its funds reduced by 25%.
The three-month money market interest rate, a variable used to calculate mortgage loans in lei, is not seen exceeding 3.5% a year in 2019.
Throughout 2018, housing demand was on the rise, as was demand for building permits, which grew 7.6% on the year in the first seven months.
With increased demand, housing prices in Romania’s main cities also grew: Cluj-Napoca (+1%, to an average EUR1,500/sqm), Iasi (+2.9%, to EUR1,045/sqm), Timisoara (+0.3%, to EUR1,204/sqm).